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Desalegn Amlaku

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HUMAN RESOURCE DEVELOPMENT PRACTICES:

ENHANCING EMPLOYEES’ SATISFACTION


A CASE STUDY OF ETHIOPIAN
ETHIOPIAN ELECTRIC POWER CORPORATION

A PROJECT SUBMITTED TO THE SCHOOL OF BUSINESS AND PUBIC


ADMINSTRATION OF ADDIS ABABA UNIVERSITY IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF
ART IN BUSINESS ADMINISTRATION

By
DESALEGN AMLAKU

ADVISOR
ATO TESHOME BEKELE

ADDIS ABABA UNIVERSITY

SCHOOL OF BUSINESS AND PUBLIC ADMINISTRATION

MBA-
MBA-PROGRAM

June 2010
ADDIS ABABA UNIVERSITY

SCHOOL OF BUSINESS AND PUBLIC ADMINISTRATION

MBA-
MBA-PROGRAM

TO
A PROJECT SUBMITTED T O THE SCHOOL OF BUSINESS AND PUBIC
ADMINSTRATION OF ADDIS ABABA UNIVERSITY IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF
ADMINISTRATION
ART IN BUSINESS ADMINISTRATION

By
DESALEGN AMLAKU GUGISSA
GSR /1996/01

ADVISOR
ATO TESHOME BEKELE

June 2010
ADDIS ABABA UNIVERSITY

SCHOOL OF BUSINESS AND PUBLIC

ADMISTRATION

MBA-
MBA- PROGRAM

HUMAN RESOURCE DEVELOPMENT PRACTICES: ENHANCING

EMPLOYEES’ SATISFACTION

A CASE STU
STUDY
TUDY OF ETHIOPIAN ELECTRIC POWER CORPORATION
CORPORATION

(EEPCo)

By
Desalegn Amlaku
Gugissa
GSR/ 1996/01

Approved by the Board of Examiners:

______________________ ___________________ __________________


Advisor Signature Date

______________________ ___________________ __________________


Examiner Signature Date

______________________ ___________________ __________________


Examiner Signature Date
Declaration

I hereby declare that this project is my original work has not been presented for a

degree in any other university and all sources of materials used for the project has

been duly acknowledged.

Declared by

DESALEGN AMLAKU GUGISSA ____________________ JUNE, 2010


Student Signature Date
ID. No GSR /1996/01

Confirmation by Advisor

Ato Teshome Bekele ___________________ JUNE, 2010


Advisor Signature Date
Acknowledgements

I am highly indebted to all people who helped me to successfully finalizing this case study. I

am particularly thankful to Ato Anwar who is staff member of EEPCo, for his unfailing

support and guidance during data collection period. He helped me in distributing and

collecting the questionnaires. I am also thankful for my advisor Ato Teshome Bekele.

My last but not the last thanks’ is for the almighty God. God helped me in all walk of my life.

DESALEGN AMLAKU
Table of Contents
Topic Page No
List of Acronym. …............................................................................................................... I
List of Tables ........................................................................................................................II
List of Charts .......................................................................................................................III
List of Annexes .....................................................................................................................IV
Abstract .................................................................................................................................V

1. INTRODUCTION ------------------------------------------------------------------------------------------- 1
1.1 Background of the Study -------------------------------------------------------------------------------- 1
1.2 Statement of the Problem and Research Questions --------------------------------------------- 2
1.3 Objective of the Study ------------------------------------------------------------------------------------ 4
1.4 Research Methodology----------------------------------------------------------------------------------- 5
1.4.1 Research Design ------------------------------------------------------------------------------------ 5
1.4.2 Population and Sample --------------------------------------------------------------------------- 5
1.4.3 Data Collection and Instrument ----------------------------------------------------------------- 6
1.4.4 Data Analysis --------------------------------------------------------------------------------------- 6
1.5 Significance of the Study -------------------------------------------------------------------------------- 7
1.6 Limitation of the study ------------------------------------------------------------------------------------ 7
1.7 Scope of the Study ---------------------------------------------------------------------------------------- 8
1.8. Organization of the Study ------------------------------------------------------------------------------- 8

2. REVIEW OF RELATED LITERATURE --------------------------------------------------------------- 9

2.1 Introduction -------------------------------------------------------------------------------------------------- 9

2.2 Theoretical Frame Work ------------------------------------------------------------------------------- 10

2.3 Definitions and Concepts of HRD -------------------------------------------------------------------- 11

2.4 Purpose of HRD System ------------------------------------------------------------------------------- 13

2.4.1 Functions of HRD System ------------------------------------------------------------------------ 15

2.4.2 Balanced Approach for HRD System ---------------------------------------------------------- 16

2.5 Components of HRD ------------------------------------------------------------------------------------ 17

2.5.1 Individual Learning & Development -------------------------------------------------------------- 18

2.5.2 Training ------------------------------------------------------------------------------------------------- 21

2.5.3 Management Development ----------------------------------------------------------------------- 24


2.5.4 Organizational Learning ---------------------------------------------------------------------------- 28

2.6 Factor that Affect Employee Satisfaction ---------------------------------------------------------- 31

3. ORGANIZATIONAL BACKGROUND --------------------------------------------------------------- 34

3.1 Establishment & Historical Dev’t of EEPCo ------------------------------------------------------- 34

3.2 The fifty years Performance of EEPCo ------------------------------------------------------------- 35

3.3 EEPCo’s Vision, Mission and Goals ---------------------------------------------------------------- 38

3.4 Training and Development Procedures ------------------------------------------------------------ 39

3.4.1 In-Service Training Procedures ------------------------------------------------------------------- 39

3.4.2 Education Procedures ------------------------------------------------------------------------------- 41


4. DATA PRESENTATION, ANALYSIS AND INTERPRETATION ----------------------------- 42

4.1 Demographic Information of Respondents -------------------------------------------------------- 42

4.2 ES with Major Aspects of HRD ----------------------------------------------------------------------- 45

4.2.1 ES with EEPCo’s Commitment to HRD -------------------------------------------------------- 45

4.2.1.1 ES with EEPCo’s Commitment to Employees Training --------------------------------- 45

4.2.1.2 ES with EEPCo’s Commitment to Education ----------------------------------------------- 48

4.2.2 ES with Appropriateness of HRD Practices ---------------------------------------------------- 50

4.2.3 ES with opportunities for HRD --------------------------------------------------------------------- 52

4.2.3.1 ES with the Fairness in Training Opportunities ------------------------------------------- 52

4.2.3.2 ES with promotion opportunities -------------------------------------------------------------- 54

4.2.4 ES with work place Learning --------------------------------------------------------------------- 55

4.2.4.1 ES with the Learning from their Job --------------------------------------------------------- 55

4.2.4.2 ES with possibilities to Learn from co-workers ------------------------------------------------- 57

4.2.5 ES with Management’s Supervision and Guidance ------------------------------------------------- 59

4.2.5.1 ES with the Coaching practices ---------------------------------------------------------------------- 59

4.2.5.2 ES with Mentoring practices -------------------------------------------------------------------------- 62

4.2.5.3 ES with Performance Counseling -------------------------------------------------------------------- 64


4.3 ES with HRD Climate ----------------------------------------------------------------------------------------- 65

4.3.1 Sprit of Cooperation among Employees -------------------------------------------------------------- 65

4.3.2 Competition and Participation ------------------------------------------------------------------------- 67

4.3.3 ES with the Overall HRD Climate ---------------------------------------------------------------------- 69

5. CONCLUSION AND RECOMMENDATIONS -------------------------------------------------------- 73

5.1 Conclusions ---------------------------------------------------------------------------------------------------- 73

5.2 Recommendations -------------------------------------------------------------------------------------------- 77


List of Acronyms

• HR – Human Resource

• HRM- Human Resource Management

• HRD – Human Resource Development

• T& D – Training and Development

• ES- Employees’ Satisfaction

• EEPCo- Ethiopian Electric Power Corporation


List of Tables

Page

Table 2.1: Levels and Methods of Training in Public Service providing organizations -------------- 24

Table 2.2: Summary of HRD Techniques --------------------------------------------------------------------- 27

Table 2.3: Summary of Criteria used to Review to HRD practices --------------------------------------- 31

Table 4.1: Summary of the number and percentage of respondent by age and sex --------------------42

Table 4.2: Summary of employees’ attitude towards EEPCo’s commitment to Employee Training ------------46

Table 4.3: Descriptive Statistics of items that measure employees’ attitude towards EEPCo’s
commitment for Employees Training --------------------------------------------------------------------------- 47

Table 4.4: Employees’ satisfaction with the appropriateness of the skills enhanced ------------------ 50
Table 4.5: Descriptive Statistics of items that measure satisfaction with the appropriateness of the
skills enhanced ------------------------------------------------------------------------------------------------------- 51
Table 4.6: Correlations between variables: High priority for providing appropriate training and the
corporation’s training and development programs improve my chances for promotion ----------------- 51

Table 4.7: Respondents’ satisfaction with the fairness in training opportunities ---------------------- 53

Table 4.8: Descriptive Statistics of items that measure Respondents’ satisfaction with the fairness
in training and development opportunities --------------------------------------------------------------------- 53

Table 4.9: Summary of employees’ satisfaction with the opportunities to learn from their job ---- 56

Table 4.10: Descriptive Statistics of items that measure Respondents’ satisfaction with the their job ------- 56
Table 4.11: Employees’ Satisfaction with Possibilities to Learning from Co-Workers --------------- 58
Table 4.12: Descriptive Statistics of items that measure Respondents’ satisfaction with the
Possibilities to Learning from Co-Workers -------------------------------------------------------------------- 59

Table 4.13: Employees’ Satisfaction with coaching practices ---------------------------------------------- 60

Table 4.14: Descriptive Statistics of items that measure Respondents’ satisfaction with the
Coaching practices -------------------------------------------------------------------------------------------------- 60
Table 4.15: Correlations between variables 'my manager provides me with the appropriate amount of
guidance' and 'In my organization the dissemination of information relevant to work is excellent'--- 61

Table 4.16: Descriptive Statistics of items that measure Respondents’ satisfaction with the
Mentoring practices ------------------------------------------------------------------------------------------------- 63

Table 4.17: Summary of employees’ attitude towards the sprit of Cooperation ----------------------- 66

Table 4.18: Descriptive Statistics of items that measure Respondents’ satisfaction with employees’
cooperation ------------------------------------------------------------------------------------------------------------ 66
Table 4.19: summary of respondents’ attitude towards competition and participation -------------- 67
Table 4.20: Descriptive Statistics of items that measure Respondents’ satisfaction with employees’
cooperation ------------------------------------------------------------------------------------------------------------ 68

Table 4.21: Descriptive Statistics of items that measure Respondents’ overall attitude towards the
corporation ------------------------------------------------------------------------------------------------------------ 70

Table 4.22: Summary of interview Results --------------------------------------------------------------------- 71


List of Figures

Page

Figure 2.1: Theoretical Frame work ----------------------------------------------------------------------------- 10

Figure 2.2: From past separate spheres to the present integrated HRD --------------------------------- 11

Figure 2.3: Balanced Approach for HRD ----------------------------------------------------------------------- 16

Figure 2.4: Components of HRD --------------------------------------------------------------------------------- 17

Figure 2.5: Training Process ------------------------------------------------------------------------------------ 23

Figure 3.1: EEPCo’s Electric Generation for the last 50 years -------------------------------------------- 36

Figure 3.2: Customers No in EEPCo over the past 50 years ------------------------------------------------ 37

Figure 3.4: No of Employees in EEPCo over the past 50 years -------------------------------------------- 37

Figure 4.1: Service of the respondents in the Corporation and on their Current job ---------------- 43

Figure 4.2: Educational profile of the respondents ----------------------------------------------------------- 44

Figure 4.3: Provision of Training for the last one year ------------------------------------------------------ 46

Figure 4.4: Summary of employees’ perception towards the Corporation’s training facility-------- 48

Figure 4.5: Summary of employees’ response for the Corporation’s supports to improve their
Educational level ------------------------------------------------------------------------------------- 49

Figure 4.6: Respondents’ satisfaction with promotion opportunities ------------------------------------- 54

Figure 4.7: Employees’ perception towards dissemination of work related information ------------- 61

Figure 4.8: Summary of employees’ response regarding Mentoring practices ------------------------- 63

Figure 4.9: Summary of employees’ satisfaction with performance counseling ------------------------ 64

Figure 4.10: Summary of respondents’ attitude towards the overall HRD climate of the corporation ------- 69
List of Annexes

PAGE

Annex 1: Questionnaire ------------------------------------------------------------------------------------ i

Annex 2: Interview Questions --------------------------------------------------------------------------- vi

Annex 3: Organizational chart ------------------------------------------------------------------------ viii


Abstract

Human Resource Development (HRD) is a planned and systematic approach to development of


employees for both organizations’ and employees’ benefit. Emphasis on HRD results into
several positive individual and organizational outcomes. HRD needs investment in training,
development and education programs. Developing an effective HRD system is a difficult task
since it needs to align both company and employees need. Employees’ satisfaction with HRD
practices are among the most important criteria to consider when assessing the human resource
development practices. Thus, this research is designed to assess employees’ satisfaction with
HRD practices in Ethiopian Electric Power Corporation (EEPCo). The main objective of the
study is to identify the level of employees’ satisfaction with: the Corporations commitment to
HRD, appropriateness of HRD practices, opportunities for growth and development,
management’s guidance and encouragements and other dimensions of HRD practices. The
research is designed as a case study. Both secondary and primary data were used in the research.
A survey questionnaire with five point Likert scale is a main tool for gathering primary data
about employees’ satisfaction with human resource development practices of the corporation. 62
participants in the Head office and one Region of Addis Ababa district were participated in
filling the questionnaires. An interview was also made with officials of training and
development team of the Corporation. The findings of the study indicated that respondents
perceived the HRD practices of the corporation as unfairly focused on some work units only.
Respondents also indicated their dissatisfaction with the promotional opportunities and the
knowledge to gain from the work they do for the Corporation. More over, majority of
respondents indicated that they don’t think that the Corporation is the best place to develop
themselves.
CHAPTER ONE
INTRODUCTION

1.1 Background of the Study

Human Resource Development (HRD) is an organized learning experience aimed at matching


the organizational need for human resource with the individual need for career growth and
development. It is a system and process involving organized series of learning activities designed
to produce behavioral changes in human resource in such a way that they acquire desired level of
competence for present or future role. At firms’ level; training and education are the main areas
of human resource development practices. Emphasis on human resource development result in
several positive individual and organizational outcomes such as higher performance, high quality
individual and organization problem solving, enhancing career plans and employability,
sustainable competitive advantage, higher organizational commitment and enhancing
organizational retention. To accomplish this undertaking, organizations will need to invest
resources to enhance employees’ knowledge, skills and competencies. .

However, ineffective HRD practice can bring many problems such as reduced employees’
enthusiastic to learn and apply new skills, decreased employee productivity, low moral, and
higher employee turnover (Fiona Edgar, 2005). Developing an effective HRD practice is a
difficult task since it demands to look into the needs of the employees and ensure that the
practices are aligned with both company and employees need. (Fiona Edgar, 2005). Therefore,
problems in human resource development system arise when the training and development
practices fail to accommodate employees’ needs. So if an organization wants to enhance
employees’ satisfaction and retain its’ employees; it should concern with improving the skills,
knowledge, attitudes and behavior of employees in organizational settings for the benefit of both
employees and the organization.

According to Ford and Noe (1987), ac cited by Eddie W.L Cheng and Danny C.K. (1998), for
HRD system to be effective and resulted in employee satisfaction eventually retention, it must be
perceived positively by employees. Employees’ satisfaction pertaining to provision of training
and development, opportunities for growth and development with in the organization and
management’s supervision and guidance are very important for successful HRD practices. (Hooi
Lai Wan, 2007). Simply providing training and development programs is not the key to better
performance and employees’ satisfaction. (Hooi Lai Wan, 2007). Organizations need to look into
the needs of the employees’ and ensure that HRD practices are aligned with both company and
individual goals.

It has been suggested that the level of employees’ satisfaction with the HRD practices are among
the most important criteria to consider when assessing the HRD practices. (Hooi Lai Wan, 2007).
Employees’ satisfaction with the organization HRD practices can be expected only when the
practices incorporate employees’ needs. Therefore, in assessing and improving the existing
practices, the level of employees’ satisfaction with the practices is worth to consider. Ethiopian
Electric Power Corporation (EEPCo.) has Human Resource Training and Development
department which is responsible for managing the corporation’s HRD practices and
administering its training and development institution. Moreover, the Corporation also sends
abroad some of its selected staffs, particularly, technical staffs for short term training. However,
much of the corporation’s HRD practices focused only in very limited areas. In general, this
project tries to assess employees’ satisfaction with HRD practices in Ethiopian Electric Power
Corporation (EEPCo.)

1.2 Statement of the Problem and Research Questions

Organizations can rarely secure people who are, at the time of employment, total masters of their
unique requirements. In most cases, there may be gap between employees’ knowledge, skills and
attitude and what the job demand. The gap must be filled through human resource development
programs. As a result, personnel training, development and education are the major ways that
firms attempt to maintain the competency levels of their human resources and increase their
adaptability to changing organizational demand. The changes in production system and method
have significance impact on production skills requirements. Thus, employees face the need to
constantly up grade their skills and develop an attitude that permit them to adopt change. More
over, employees’ are demanding professional and career development opportunities with in their
organization which in turn require considering the needs of employees in training, development
and education programs. Thus, providing an effective human resource development program is
required to enhance both firms’ competitiveness and employee satisfaction.

However, in developing countries most organizations tend to give less emphasis for employees’
needs in HRD programs. (Hooi Lai Wan, 2007). Inadequate need assessment, outdated training
and development methods, limited educational opportunities, unequal access to training
opportunities, insufficient opportunity to learn skills/knowledge that will improve employees
chance of promotion, inadequate opportunities for career growth and poor supervisors guidance
for employees’ development are some of the areas which results dissatisfaction with HRD
practices. (Hooi Lai Wan, 2007). These problems later on lead the organizations to lack of
optimal man-task relationship, resistances of employees in taking future assignments, decrease in
productivity, increase in operational error, decrease in employee moral and commitment and
increase in employee turnover.

According to preliminary survey conducted by the researcher, employee turn over is one of the
problems that Ethiopian Electric Power Corporation (EEPCo) has facing. Among other factors
employees’ dissatisfaction with HRD practices is one factor which could result in employee turn
over. According to one of the HR department personnel of EEPCo, comparing with other
governmental owned organizations like ETC; EEPCo has highest employee turn-over especially
in non-technical staffs. According to the person, much of the Corporation’s HRD practices
focused in very limited areas like generation construction, generation operation and distribution
work units.

Based on the data collected from the employees of Ethiopian Electric Power Corporation, the
study tried to analyze the extent to which employees’ satisfied with different dimensions of HRD
practices in the Corporation.

To this end, the research tried to answer the following research question:
o How do employees’ feel about the Corporation commitment in providing training and
educational opportunities?
o What are the major issues in HRD practices which affect employees’ satisfaction in the
corporation?
o How do employees see the opportunities for growth and development with in the
Corporation?
o What is the level of employees’ satisfaction with the guidance, encouragement and
support provided by their manager/supervisor for employee development?
o What is the level of employees’ satisfaction with the skills and knowledge enhanced by
the corporation’s human resource development programs?

1.3 Objective of the Study


The main objectives of this study were to assess employees’ satisfaction with HRD practices of
Ethiopian Electric Power Corporation. Specifically, the research was undertaken to:

o Identify the level of employees’ satisfaction with the Corporation’s commitment in


providing training, education and development opportunities.

o Know the level of employees’ satisfaction with regard to the appropriateness of the skills
and knowledge enhanced by human resource development programs.

o Know employees’ perception towards opportunities for growth and development in the
Corporation.

o Know employees’ perception towards their managers/supervisors support in provided


guidance and encouragement for employees’ development.
o Know how the perception of employees towards the possibilities in workplace learning in
the corporation
o Based on the findings and literature reviews, to summarize, conclude and recommend
alternative ways to improve human resource development practices.

More specifically, to achieve the research objectives the research attempted to measure the level
of employees’ satisfaction with regard to:
o Support provided to improve their education level
o Access to job-related training opportunities
o Possibility of learning from their job and colleagues
o Opportunity to work with up-to-date technologies
o Opportunity to learn skills that will improve chance for promotion
o Manager assistance in identifying employees’ training and development needs
o Managers/supervisors support and encouragement for professional development

1.4 Research Methodology

1.4.1 Research Design

The purpose of this research was to evaluate employees’ satisfaction with human resource
development practices of Ethiopian Electric Power Corporation by studying a sample. The
research is designed as a case study. I preferred Case study approach since it is best method to
explore in depth a program, event, activity, process or one or more individuals. Furthermore,
Case study approach can provide very engaging and rich explorations of a program or
application as it develops in a real-world setting.

1.4.2 Population and Sample

For the study the population was permanent management and non management staffs who were
working in the Head Office and Addis Ababa District offices of Ethiopian Electric Power
Corporation. The preliminary survey undertaken by the researcher indicates that there were 1038
total staff members as of April 01, 2010. Among these, 90 were at the head office and the
remaining in Southern, Northern, Western and Eastern Regions of the Addis Ababa District. The
study was focus on one randomly selected Region of Addis Ababa District and the Head office
of the Corporation.

A total of 62 questionnaires (6.5% of the total population) were distributed to gather pertinent
information with regard to employees’ level satisfaction. Among these questionnaires, only 48
were fully and correctly completed and returned with the return rate of 77.42% which is
acceptable. The participants were selected using convenience sampling method that is based on
the willingness of the respondents to complete the questionnaire.

1.4.3 Data Collection and Instruments

The study was based on both secondary and primary data sources. It was begun by secondary
data analysis through the detailed review of related literature. To this end; books, articles,
journals, magazines, bulletins and the Corporation’s training and development policy documents
were reviewed.

Primary information about the level of employees’ satisfaction with human resource
development practices of the corporation was obtained through questionnaire survey. The
questionnaire comprises three sections. Section I contains demographical questions about the
respondents including sex, age, years of work experience, length of service with the corporation
and educational level. Section II items incorporates; perceptual responses pertaining to provision
of training and development, growth and development opportunities, workplace learning issues
and management’s supervision and guidance. For section II, a five point Likert scale that range
from 1 (strongly disagree) to 5 (strongly agree) were used. And section III items incorporate
open ended questions which require respondents to give their explanation.

More over, data on current human resource development policy of the Corporation from
management point were gathered using structured interview format. For this end, interviews with
Executive officer of Human Resource and Head of Training and Development team were
conducted.

1.4.4 Data Analysis

The data analysis of the study is done in away that its objectives demand. As much possible,
separate analysis for individual objectives is done. Demographic characteristics are summarized
using frequencies and percentages for all variables including: age, sex, work experience, years on
the current job/position and educational level. In employees’ satisfaction analysis; the data
gathered through questionnaires were analyzed and presented in the form of charts, diagrams and
tables using SPSS software.

The results of the interview questions were integrated to the responses of employees through
questionnaires and were analyzed accordingly.

1.5 Significance of the Study

The result of this project will be significance in various respects. Firstly, the study will draw
some conclusions and identify employees’ complaint areas in human resource development
practices of the Corporation. Thus, it will give signal to the human resource management of the
corporation to take remedial action. Secondly, it will help as a source of reference and a stepping
stone for those researchers who want to make further study on the area afterwards. Thirdly, it
gives the researcher the opportunity to gain deep knowledge in contemporary practice of human
resource development.

1.6 Limitation of the Study

There were external variables that deter the smooth implementation of the project in addition to
the limitations of the research design itself. For instance, lack of access to the right secondary
data in the Corporation and poor cooperation of respondents in filling the questionnaires has
seriously limit the outcome of the research. More over, lack of relevant and up to date literatures
was the major constraint during the study.

1.7 Scope of the Study


Most of studies conducted on current literatures of HRD shows that scope of HRD is
characterized by a view that HRD is too amorphous. The amorphous nature of HRD make very
difficult to clearly determine the scope and boundaries for HRD. Therefore, given the time and
financial constraint, in the study the scope of HRD is limited with individual learning and
development, training, management development, and organizational learning concept.

The research was conducted only in one Region of Addis Ababa district and the Head office of
Ethiopian Electric Power Corporation. The information for this research is limited to the
employees’ perception towards HRD practices of the Corporation. Employees working in
generation construction, generation operation and distribution system work units were not
included in this research.

1.8 Organization of the Study

The rest of the paper is organized as follows: chapter two reviews the theoretical and empirical
literatures on human resource development. Chapter three deal with the establishment and
historical development of Ethiopian electric power corporation. Chapter four presents the
secondary and primary data analysis. Finally, chapter five will contain the summary, conclusion
and recommendations.

CAPTER TWO
REVIEW OF RELATED LITERATURE

2.1 Introduction
Increasingly, more importance is being given to “people” in organizations. This is mainly
because organizations are realizing that human assets are the most important of all assets. This
emphasis can also be partly attributed to the new emerging values of humanism and
humanization. Moreover, with the increased emphasis on creativity, and autonomy, which people
are increasingly acquiring and enjoying in the society, the expectations of people are fast
changing. People cannot be taken for granted any more.

Organizations seek to optimize their workforce through comprehensive development programs


not only to achieve organizational goals, but also most importantly, to satisfy and retain their
workforce. To accomplish this undertaking company will need to invest resources to ensure that
employees have the information, skills and competences they need to work effectively and meet
employees need for growth and development. Although development of human resource has
been in existence in some form or the other since the beginning of civilization, a planned and
systematic approach to Human Resource Development (HRD) in the corporate sector emerged in
the late half of the 20th century (C.B. Gupta, 2001).

This chapter will serve as the foundation for the development of the study. Therefore, the
primary purpose of this chapter is to give the theoretical understanding in assessing employees’
satisfaction with regard to an organization human hesource development practices. More
specifically, review of up-to-date related literatures regarding: definitions of HRD, purposes of
HRD, components of HRD and factors affecting Employees’ Satisfaction (ES) will be presented.

2.2 Theoretical Frame Work

Figure 2.1: Theoretical Frame Work

HRD

Definitions and concepts of HRD


Source: Literature Review

2.3 Definitions and Concepts of Human Resource 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 Mondy 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 Mondy and Noe’s 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.

According to Harrison (2000) as cited in Michael 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
which 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.

As described by Michale M.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: (1). HRD includes the areas of: training and development,
promotion and professional growth and organization development. (2). HRD improve
employees’ both job performance and personal growth and (3). HRD is process improving
personal growth with in the organization.
From the definitions that we have seen so far we can understand that the deriving force of HRD
is built on the assumption that employees cannot be treated as commodities to be hired and
discarded depending on short-range whims of the organization. They are to be nurtured and
developed with their unlimited potential for both employees and organizations benefits. More
importantly, good people can fix the poor policies, procedure, and rules, but it is never the other
way round.

Figure 2.2: From past separate spheres to the present integrated HRD

Past Training and

On- Job and Off - Managers &


Some aspect of
Job training professionals:
Education
Development

Learning & Development at work

Many aspects of What work


formal Education organizations do for
Present

HRD

Source: Stephen Gibb (2002)

Evidences from most HRD theorists and practitioners including T.V. Rao as cited in C.B. Gupta
(2001), recognized HRD in the organization context is a process by which the employees of an
organization are helped, in a continuous and planned way to:

• Acquire or sharpen capabilities required to perform various functions associated with


their present or expected future roles;

• Develop their general capabilities as individuals and discover and exploit their own inner
potentials for their own and/or organizational development purposes; and
• Develop an organizational culture in which supervisor-subordinate relationships,
teamwork and collaboration among sub-units are strong and contribute to the professional
well being, motivation and pride of employees.

From the study conducted on current literatures of HRD shows that scope and nature of HRD is
characterized by a view that HRD is too amorphous a concept. The amorphous nature of HRD
makes very difficulty to clearly determine the scope of HRD. Yet, if HRD has a role to play in
helping organizations develop, then there is a need for HRD professionals in an organization to
accept that HRD itself is a continuously evolving, adaptive concept; and they need to embrace
change and ambiguity in order to help individuals, groups and organizations (Mankin, David
P.2001).

2.4 Purposes of Human Resource Development System

The combination of the four focus of HRD (Individuals, Dyades (employee-boss), Team, and
Organization) with four agents of HRD (Employee, Immediate boss, HR department, and
Organizations) gives the HRD systems (Michael Armstrong, 2006). According to him, the
fundamental purpose of HRD system is to enhance resource capability in accordance with the
belief that the human capital of an organization is a major source of competitive advantage. It is
therefore about ensuring that the right quality people are available to meet present and future
needs. This is achieved by producing a coherent and comprehensive framework for developing
people. Further more, Armstrong has mentioned specific purpose of HRD as: to develop
intellectual capital and promote organizational, team and individual learning by creating a
learning culture – an environment in which employees are encouraged to learn and develop and
in which knowledge is managed systematically.

Most theorists suggest that the general purpose of HRD system is to develop the individual
employee by providing training and development activities, thus enhancing personal
development, work processes and organizational performance to achieve organizational
effectiveness. Indeed, the central role of HRD was to benefit individuals, groups and
organizations. However, development and change have to be embedded within an individual
before progressing into teams and organizations. Armstrong stressed that change in an
organization always involves changing the individual and is first focused on individual
development.

In addition to the view of Armstrong, C.B. Gupta (2001) has mentioned the following as the
main purpose of HRD systems:
• To develop the capabilities of each employee as an individual.
• To develop the capabilities of each individual in relation to his or her present role.
• To develop the capabilities of each employee in relation to his or her expected future
role(s).
• To develop the dyadic relationship between each employee and his or her supervisor.
• To develop the team spirit and functioning in every organizational unit (department,
group, etc.)
• To develop collaboration among different units of the organization.
• To develop the organization’s overall health and self-renewing capabilities which, in
turn, increase the enabling capabilities of individuals, dyads, teams, and the entire
organization.

Evidences from Gupta (2001) show that in order to achieve the above mentioned objectives of
HRD system, human resource management functions need to work in coordinated and integrated
manner.

2.4.1 Functions of Human Resource Development System

According to Michale M.Harris (2008), human resource development system has the following
six major functions:

1) Analyzing the Role: One of the main aspects of HRM is to analyze the role in terms of
responsibilities or key functions/ performance areas of the role, and the competencies
required to perform the role effectively.
2) Matching the Role and the Person: Once the organization is clear about the dimensions of
the roles or the jobs, it tries to get the best people for these jobs. After people are recruited
they are put in different places. Placement is useful for giving varied experiences to people
being recruited. Another aspect of matching role and person is reflected in potential
appraisal, finding out who has potential to match the requirement of the job. Obviously, the
next step is promotion of people by placing them in appropriate roles for which the
organization is searching people.
3) Developing the Persons in the Role: Individuals develop not only through training, but in
fact more through effective supervision, by helping them to understand their strengths so that
they can leverage them for better performance. Similarly, they are helped to find out in what
they have to be more effective in their jobs. In this regard performance coaching or
counseling and mentoring are very important.
4) Developing the Role for the Person: Developing the role makes the role worth doing for the
person. Very little attention has been given to role, although job rotation is being practiced in
most of the organizations, and some organizations have also tried out job enrichment based
on Herzberg’s concept of motivators.
5) Developing Equitability: Satisfaction level of employees depends to a great extent on their
perceived justice being done to them without any discretion, as reflected in practices like
management of compensation, rewards and various amenities. People have high performance
and develop competencies only if these are rewarded by the organization. Reward does not
mean financial reward only; many rewards may be non-financial also. Equitability can also
be developed by standardizing administrative procedures, so that people do not have any
feelings that decisions are subjective
6) Developing Self-renewing Capability: An organization should be concerned not only with
its growth, but also with its health. It needs to diagnose its problems from time-to-time and
take steps to develop new competencies to cope with the various problems and challenges it
would be facing. This can be done through action research that is concerned with
development of competencies through effective teams to diagnose the problems and initiate
the process of collaborative work to deal with such problems.

2.4.2 A Balanced Approach for Human Resource Development System


According to researches conducted in USA on the effect of HRD programmes on employee
engagement and performance, as cited by Michale M.Harris (2008), the impact of training-based
HRD programmes found significantly less than Relational and Experience- based HRD
programmes. As result, a balanced approach for HRD has emerged recently in the field of HRD.
A balanced approach is required to maximize the impact of development on engagement and
performance. This is illustrated in the following Figure.

Figure 2.3: Balanced Approach for HRD

Development

10% 20% 70%


• Development in
• Training • Leadership
role
• worksho • Co-workers
• Work place learning
• Transfer of • Feedback
• Projects
learning
• Coaching
• Stretched
• Developmen assignments
• Mentorin
t of learning
g • Role enlargement
culture

Training- based Relation- based Experience-based

Source: Michale M. Harris (2006)


2.5 Components of Human Resource Development

Thomson and Mabey (1994), as cited by Michael Armstrong (2006), present the components of
HRD using the following diagram:

Figure 2.4: Components of HRD

Human Resource Development

Organizational Individual Training Management


Learning Learning and Development
Source: Michael Armstrong (2006)

In the following subsequent sections, based on the above shown Thomson and Mabey’ model for
HRD, each components will be presented and discussed accordingly.

2.5.1 Individual Learning and Development

The concept of human resource development should necessarily cover the individual
development to facilitate and enhance teams and organization developments. As the above model
also clearly shows, the major focus of HRD is on individuals. In this sub section, the main
components of individual learning and development i.e. self-directed learning, coaching and
mentoring techniques will be discussed.

2.5.1.1 Self-Directed Learning


Self-directed or self-managed learning involves encouraging individuals to take responsibility for
their own learning needs, either to improve performance in their present job or to develop their
potential and satisfy their career aspirations (Michale M.Harris, 2008). It can be based on a
process of recording achievement and action planning that involves individuals reviewing what
they have learnt, what they have achieved, what their goals are, how they are going to achieve
those goals and what new learning they need to acquire (Michale M.Harris, 2008). The learning
program can be ‘self-paced’ in the sense that learners can decide for themselves up to a point the
rate at which they work and are encouraged to measure their own progress and adjust the
program accordingly (Michale M.Harris, 2008).

Michale M. Harris’ explanation for Self-directed learning is based on the principle that people
learn and retain more if they find things out for themselves. But they still need to be given
guidance on what to look for and help in finding it. Therefore, in self-directed learning, learners
have to be encouraged to define; with whatever help they may require, and what they need to
know to perform their job effectively. Further more, learners need to be provided with guidance
on where they can get the material or information that will help them to learn and how to make
good use of it. Learns also need support from their manager and the organization with the
provision of coaching, mentoring and learning facilities, including e-learning.

Workplace learning: One of the ways that employees can learn with in an organization is the
learning around the workplace. Learning can takes place in the workplace, as explained by
Michale M.Harris (2008), this takes three forms:
1. The workshop as a site for learning. In this case, learning and working are spatially separated
with some form of structured learning activity occurring off or near the job. This may be in a
company training centre or a ‘training island’ on the shop floor where the production process is
reproduced for trainees.
2. The workplace as a learning environment. In this approach, the workplace itself becomes an
environment for learning. Various on-the-job training activities take place, which are structured
to different degrees.
3. Learning and working are inextricably mixed. In this case, learning is informal. It becomes an
everyday part of the job and is built into routine tasks. Workers develop skills, knowledge and
understanding through dealing with the challenges posed by the work. This can be described as
continuous learning. As Michale M.Harris put it: ‘Learning is not something that requires time
out from being engaged in productive activity; learning is the heart of productive activity.

2.5.1.2 Coaching

The Industrial Society (1999) as cited in Haslinda and Abdullah (2009), defines coaching as:
‘The art of facilitating the enhanced performance, learning and development of others.’ It takes
the form of a personal (usually one-to-one) on-the-job approach to helping people develop their
skills and levels of competence. As Armstrong (2006) referred Hirsh and Carter (2002), state that
coaching is aimed at the rapid improvement of skills, behavior and performance, usually for the
present job. A structured and purposeful dialogue is at the heart of coaching. The coach uses
feedback and brings an objective perspective.

The need for coaching may arise from formal or informal performance reviews but opportunities
for coaching will emerge during normal day-to-day activities. Coaching as part of the normal
process of management consists of (Michael Armstrong, 2006):

• Making people aware of how well they are performing by, for example, asking them
questions to establish the extent to which they have thought through what they are doing;

• Controlled delegation – ensuring that individuals not only know what is expected of them
but also understand what they need to know and be able to do to complete the task
satisfactorily; this gives managers an opportunity to provide guidance at the outset –
guidance at a later stage may be seen as interference;
• Using whatever situations may arise as opportunities to promote learning;
• Encouraging people to look at higher-level problems and how they would tackle them.

Coaching will be most effective when the coach understands that his or her role is to help people
to learn and individuals are motivated to learn. Employees should be aware that their present
level of knowledge or skill or their behavior needs to be improved if they are going to perform
their work satisfactorily. Individuals should be given guidance on what they should be learning
and feedback on how they are doing and, because learning is an active not a passive process,
they should be actively involved with their coach who should be constructive, building on
strengths and experience.
2.5.1.3 Mentoring

Mentoring is the process of using specially selected and trained individuals to provide guidance,
pragmatic advice and continuing support, which will help the person or persons allocated to them
to learn and develop. It has been defined by Clutterbuck (2004) as: ‘Off-line help from one
person to another in making significant transitions in knowledge, work or thinking.’ Hirsh and
Carter (2002) suggest that mentors prepare individuals to perform better in the future and groom
them for higher and greater things, i.e. career advancement.

From the above two definitions we can understand that Mentoring can viewed as a method of
helping people to learn, as distinct from coaching, which is a relatively directive means of
increasing people’s competence. It involves learning on the job, which must always be the best
way of acquiring the particular skills and knowledge the job holder needs. Mentoring also
complements formal training by providing those who benefit from it with individual guidance
from experienced managers who are ‘wise in the ways of the organization’.

As explained by Michale M.Harris (2008), Mentors provide employees with:

• Advice in drawing up self-development programmes;


• General help with learning programmes;
• Guidance on how to acquire the necessary knowledge and skills to do a new job;
• Advice on dealing with any administrative, technical or people problems individuals
meet, especially in the early stages of their careers;
• Information on ‘the way things are done around here’ – the corporate culture and its
manifestations in the shape of core values and organizational behavior (management
style);
• Help in tackling projects – not by doing it for them, but by pointing them in the right
direction: helping people to help themselves;
• A parental figure with whom individuals can discuss their aspirations and concerns and
who will lend a sympathetic ear to their problems.

There are no standard mentoring procedures, although it is essential to select mentors who are
likely to adopt the right non-directive but supportive help to the person or persons they are
dealing with. They must then be carefully briefed and trained in their role.

2.5.2 Training

Training is the use of systematic and planned instruction activities to promote learning. The
approach can be summarized in the phrase ‘learner-based training’. It involves the use of formal
processes to impart knowledge and help people to acquire the skills necessary for them to
perform their jobs satisfactorily. It is described as one of several responses an organization can
undertake to promote learning.

As Reynolds (2004) points out, training has a complementary role to play in accelerating
learning: ‘It should be reserved for situations that justify a more directed, expert-led approach
rather than viewing it as a comprehensive and all-pervasive people development solution.’ He
also commented that the conventional training model has a tendency to ‘emphasize subject-
specific knowledge, rather than trying to build core learning abilities’.

Training can bring tangible benefits to both the organization and the employees. As elaborated
by Chatterjee (1995), the major purposes of training are:

• It establishes a sound relationship between the worker and his/her job.


• It upgrades skills and prevents obsolescence.

• To keep pace with changing technology training.

• It develops healthy, constructive attitudes.


• Influencing employee attitudes to achieve support for organizational activities and to
obtain better cooperation and greater loyalty.

• It prepares employees for future assignments.

• It increases productivity.

• To promote efficient and cost-effective ways of performing jobs

• It minimizes operational errors.

• Unnecessary repetition, wastage and spoilage of materials are brought down.

• With better knowledge and skills, the employee approaches his/her job with greater
confidence and sureness. It also improves the morale of the employees.

• It improves employees satisfaction with their job.

• Training is a powerful tool that breeds in the employee a sense of pride as well as of
belonging.

• Moreover, training can improve the relationship between the employees and their
immediate supervisor.

2.5.2.1 Training Process

Training should be systematic in that it is specifically designed, planned and implemented to


meet defined needs. It should be provided by people who know how to train, and the impact of
training is carefully evaluated. Training process consists of a simple five-stage model, as
illustrated below (Michale M.Harris, 2008):

Figure 2.5: Training process

Identify training needs

Organization Task (job) Personal


al Analysis Analysis Analysis
Source: Michale M.Harris (2008)

As cited in Theresia D. and severine k.(2008), training for employees in public service
management office is grouped into seven levels. These levels include induction, basic,
specialized, extended, special groups, leadership & development programs and counter-part
trainings. The grouping is designed in order to cut across levels of staff in the office. The
following table describes these training levels:

Table 2.1: Levels and Methods of Training in public service providing organizations

Levels of Training Description Training Methods


Induction training Training for newly employed staff, to On the job
familiarize them with the strategic goals Job instruction
and functions of their organization and
responsibility.
Basic training It takes place within an officer’s first year On the job
on the job to enhance their skills in Apprenticeship, internships,
performing their duties effectively. job rotation, supervisory
assistance & mentoring
Specialized training It is specialized training which reflects the Off-the job
Training Needs Assessment (TNA) on Formal course
specified number of employees.
Extended training Training given to enable officers to handle Off-the-job
extra tasks or higher level jobs. It is more Formal course, role playing,
emphasized on experienced employees. simulation, study tours
Training for special Training organized for women and On the job
groups disabled. This is to emphasize equal Job instruction
opportunities for all employees. Supervisory assistance
Off –the job, formal course
Leadership and Training for experienced staff, aimed at Off-the-job
development enhancing the officer’s employability over Formal course
programs the long term. Field trips
Counterpart It is provided by foreign experts to their On the job
training local counterparts. This is done to sustain Apprenticeship
the services provided by these experts. Job instruction
Off-the-job
Source: Theresia D. and severine k.(2008)

2.5.3 Management Development

Management development is concerned with improving managers’ performance in their present


roles and preparing them for greater responsibilities in the future. It has been described by
Mumford and Gold (2004) as ‘an attempt to improve managerial effectiveness through a learning
process’. In other words, Glueck (1978) defined management development as the process by
which managers gain the experience, skills, and attitudes to become or remain successful leader
in their enterprises. Among other things, making the organization a better environment to work is
the responsibility of a manager. To effectively discharge this and other managerial
responsibilities organizations must provide an opportunity for managers to improve their
knowledge and skills through management development program.
Management development contributes to organizations success by helping the organization to
grow the managers it requires to meet its present and future needs. It improves managers’
performance, gives them development opportunities, and provides for management succession.
According to Michael Armstrong (2006), with an effective management development
programmes: development processes may be anticipatory (so that managers can contribute to
long-term objectives), reactive (intended to resolve or preempt performance difficulties) or
motivational (geared to individual career aspirations).

As pointed out by Michael Armstrong (2006), the particular aims of management development
are to:
• Ensure that managers understand what is expected of them; agreeing with them
objectives against which their performance will be measured and the level of competence
required in their roles;
• Improve the performance of managers in their present roles as a means of preparing
them for greater responsibilities;
• Identify managers with potential, encouraging them to prepare and implement personal
development plans and ensuring that they receive the required development, training and
experience;
• Provide for management succession, creating a system to keep this under review.

Management Development Process: As discussed by Michael Armstrong (2006), the three


essential management development activities are:
• Analysis of present and future management needs;
• Assessment of existing and potential skills and effectiveness of managers against those
needs;
• Developing strategies and plans to meet those needs.

A systematic approach to management development is necessary because the increasingly


onerous demands made on line managers mean that they require a wider range of developed
skills than ever before. Tamkin et al (2003) suggest that managers need the ability to:
• Empower and Develop People – understand and practice the process of delivering
through the capability of others;

• Manage People and Performance – managers increasingly need to maintain morale


whilst also maximizing performance;

• Work across boundaries, engaging with others, working as a member of a team, thinking
differently about problems and their solutions;

• Develop relationships and a focus on the customer, building partnerships with both
internal and external customers;

• Balance technical and generic skills – the technical aspects of management and the
management of human relationships.

Management Development Elements: It has been suggested by Mumford (1993) that three
elements have to be combined to produce an effective management development system:

• Self-Development – a recognition that individuals can learn and that the initiative for
development often rests with the individual;

• Organization-Derived Development – the development of the systems of formal


development which belongs to personnel and management development specialists;

• Boss-Derived Development – those actions undertaken by a senior manager with others,


most frequently around real problems at work.

Table 2.2: Summary of Human Resource Development Techniques


Management Development Description
Techniques
1. On-the-job
• Coaching The coach or counselor sets mutually agreed upon goals, suggests
how to achieve these goals, periodically reviews the trainee’s
progress and suggests changes required in behavior and
performance.
• Under study An understudy is a person selected and being trained as the heir
apparent to assume at a future time the full duties and responsibilities
of the position presently held by his superior.
• Position Rotation It involves movement or transfer of executives from one position or
job to another on some planned basis.
• Project Assignment A number of trainee executives are put together to work on a project
directly related to their functional area.
• Committees Through discussion in committee meetings trainees get acquainted
Assignment with different viewpoints and alternative methods.
• Multiple Management With more than one assignment trainees learn decision making skills.
Specially used in developing junior board members.
• Selected Readings With this approach managers have become close touch with the latest
developments in the field.
2. Off the job
• Lectures These are formally organized talks by an instructor on specific topics.
• Case studies Real or hypothetical business problem or situation demanding
solution is presented in writing to the trainees.
• Group discussions It is a variant of the lecture method. Under it paper is prepared and
presented by one or more trainees on the selected topic.
• Conferences Problems of common interest are discussed where the participants
pool their ideas and experience to deal with the problems effectively
• Role playing Two or more trainees are assigned parts to play before the rest of the
class.
• Management Management or business games are designed to be representative of
Games real life situations.
• In basket exercise The trainee is provided with a basket or tray of papers and files
related to his functional area. And he is expected to carefully study
these and make his own recommendation on the problem.
• Sensitivity training This method is also called T-Group training and laboratory training.
The purpose is to increase self awareness, develop inter-personal
competence and sharpen teamwork skills
Source: C.B. Gupta (2001)
2.5.4 Organizational Learning

Organizational learning theory examines how in an organization context individual and team
learning can be translated into an organizational resource and is therefore linked to processes of
knowledge management. Organizational learning is concerned with the development of new
knowledge or insights that have the potential to influence behavior (Mabey and Salaman, 1995).
It takes place within the wide institutional context of inter-organizational relationships (Geppert,
1996), and ‘refers broadly to an organization’s acquisition of understanding, know-how,
techniques and practices of any kind and by any means’ (Argyris and Schon, 1996).

Organizational learning has been defined by Marsick (1994) as a process of ‘coordinated systems
change, with mechanisms built in for individuals and groups to access, build and use
organizational memory, structure and culture to develop long term organizational capacity’. It is
emphasized by Harrison (2000) that organizational learning is not simply the sum of the learning
of individuals and groups across the organization. She comments that: ‘Many studies (see for
example Argyris and Schon, 1996) have confirmed that without effective processes and systems
linking individual and organizational learning, the one has no necessary counterpart with the
other’.

Organizational learning theory is concerned with how learning takes place in organizations. It
focuses on collective learning but takes into account the proposition made by Argyris (1992), as
referred by Michael Armstrong (2006), that organizations do not perform the actions that
produce the learning; it is individual members of the organization who behave in ways that lead
to it, although organizations can create conditions which facilitate such learning. Most
organizational learning theories recognize that the way in which this takes place is affected by
the context of the organization and its culture.

The concept of a learning organization, which is often associated with that of organizational
learning, has been defined by Scarborough and Carter (2000) as one ‘that is able to discover
what is effective by reframing its own experiences and learning from that process’. The notion of
the learning organization is sometimes confused with the concept of organizational learning.
2.5.4.1 Outcomes of Organizational Learning

Organizational learning outcomes contribute to the development of a firm’s resource based


capability. This is in accordance with one of the basic principles of human resource management,
namely that it is necessary to invest in people in order to develop the intellectual capital required
by the organization and thus increase its stock of knowledge and skills. As stated by Ehrenberg
and Smith (1994), human capital theory indicates that: ‘The knowledge and skills a worker has –
which comes from education and training, including the training that experience brings –
generate productive capital’.

Pettigrew and Whipp (1991) believe that the focus of organizational learning should be on
developing ‘organizational capability’. This means paying attention to the intricate and often
unnoticed or hidden learning that takes place and influences what occurs within the organization.
‘Hidden learning’ is acquired and developed in the normal course of work by people acting as
individuals and, importantly, in groups or ‘communities of practice’ (Wenger and Snyder, 2000).

2.5.4.2 Developing Learning Culture

A learning culture is one that promotes HRD because it is recognized by top management, line
managers and employees generally as an essential organizational process to which they are
committed and in which they engage continuously.

Reynolds (2004) describes a learning culture as a ‘growth medium’ that will ‘encourage
employees to commit to a range of positive discretionary behaviors, including learning’ and
which has the following characteristics: empowerment not supervision, self-managed learning
not instruction, long-term capacity building not short-term fixes. It will encourage discretionary
learning, which Sloman (2003) believes takes place when individuals actively seek to acquire the
knowledge and skills that promote the organization’s objectives.

It is suggested by Reynolds (2004) that to create a learning culture it is necessary to develop


organizational practices that raise employees’ satisfaction and commitment and ‘give employees
a sense of purpose in the workplace, grant employees opportunities to act upon their
commitment, and offer practical support to learning’. He proposes the following steps:

1. Develop and share the vision – belief in a desired and emerging future.
2. Empower employees – provide ‘supported autonomy’; freedom for employees to manage
their work within certain boundaries (policies and expected behaviors) but with support
available as required.
3. Adopt a facilitative style of management in which responsibility for decision making is
ceded as far as possible to employees.
4. Provide employees with a supportive learning environment where learning capabilities
can be discovered and applied, e.g. peer networks, supportive policies and systems,
protected time for learning.
5. Use coaching techniques to draw out the talents of others by encouraging employees to
identify options and seek their own solutions to problems.
6. Guide employees through their work challenges and provide them with time, resources
and, crucially, feedback.
7. Recognize the importance of managers acting as role models: ‘The new way of thinking
and behaving may be so different that you must see what it looks like before you can
imagine yourself doing it. You must see the new behavior and attitudes in others with
whom you can identify’.
8. Encourage networks – communities of practice.
9. Align systems to vision – get rid of bureaucratic systems that produce problems rather
than facilitate work.

Table 2.3: Summary of criteria used to review HRD practices of an organization


Criteria Employees
perceived strength
1 Importance give to HRD
• Top management’s commitment to HRD
• Focus on employee development throughout
• Participation in HRD at all levels
• Every one trained in HRD
2 Good HRD system, Department and Staff
• Good HRD department
• Competent personnel involved in HRD
• Integrated HRD system
• HRD is synchronized with culture
• Linkage of HRD with long-term planning
3 Supportive Personnel policies
• Well defined personnel policies
• Sound recruitment policies
• Better compensation and job security
• Good welfare schemes
• Good use of personnel data
3 Organization Culture
• Quest for excellence
• Culture of openness
• Credibility and fairness of top management
• Encouraging experimentation/ risk taking
• Informality
• Team sprit
• Non- bureaucratic organization
• Emphasis on individual strengths
• No competition among employees
• Good climate for HRD
4 Training
• Emphasis on need-based training
• Good internal faculty for training
• Adequate finance for training
• Good training center
5 Other HRD subsystems
• Good performance appraisal system
• Good career planning systems
• Counseling
• Role clarity
6 General
• Young and qualified work force
• Capable employees
• Support by the government
Source: C.B. Gupta (2001)

2.6 Factors that Affect Employee Satisfaction


Satisfaction is an important goal for organizations to reach as it has been shown that profitability,
productivity, employee retention, and customer satisfaction are linked to Employee Satisfaction
(ES). Satisfied, motivated employees will create higher customer satisfaction and in turn
positively influence organizational performance. Past research that focused on ES (Becker and
Gerhart, 1996; Becker and Huselid, 1998; Wright and Boswell, 2002), as referred by Hooi Lai
Wan (2007), established the link between human resource development and organizational
performance. Other behavioral theories too suggest that the impact of human development
management practices on performance is mediated by ES, commitment and well-being (Hooi Lai
Wan, 2007).

However, studies by Marsden and Richardson (1994) as cited in Hooi Lai Wan (2007), revealed
that the impact of human capital management practices on ES is rather limited, as evidenced by
the way in which new performance related pay schemes have been introduced in many
organizations in recent years. Similarly, others studies shows that the impact of HRD itself may
be contingent on other factors, such as the age, skill and educational composition of the
workforce, or on employees’ individual dispositions and orientations to work, or on existing
institutional arrangements (Hooi Lai Wan, 2007)

What actually constitutes ES and what factors affect it? A comprehensive review of related
literature revealed numerous definitions and factors that affect ES. Though there are variations in
the definitions of ES, all agreed that it is a multidimensional concept. Locke (1976) defined ES
as “. . . a pleasurable or positive emotional state resulting from the appraisal of one’s job or job
experience”. Similarly, Dawis and Lofquist (1984) defined ES as the result of the worker’s
appraisal of the degree in which the work environment fulfils the individual’s needs.

Theorists and practitioners seem to accept the assumption that nearly everybody seeks
satisfaction in his or her work, if a person becomes engaged in work that matches his
occupational choices, he is likely to experience job satisfaction. Locke (1976) noted three
“schools” of thought about causes of ES: physical-economic (physical working conditions),
social (supervision and cohesive work groups), and nature of work (mentally challenging tasks,
opportunities for mobility within organization, working for supervisors who actively assist their
subordinates to address job-related problems and work-related variables).
Research by Goldfarb Consultants (1999) on the private and public sectors in Canada revealed
similar results. The study showed that the top five most important factors that influenced ES
have more to do with interpersonal relationships (quality of decision makers, communication and
relations between managers and employees), atmosphere at the workplace (work ethic, level of
innovation and physical environment) and sense of personal achievement (personal growth
opportunities and level and range of responsibility) than it has to do with attributes that can be
measured (amount of time off, benefits, work hours and salary).

As far as the effect of HRD policies on ES is concerned; limited literature on this shows a
positive correlation. According to Lee (2000), organizations that invest in HRD are more likely
to increase ES. In addition, Chen et al. (2004) found that opportunities for mobility within
organization and career development programs positively influence ES, professional
development and productivity.

CHAPTER THREE

ORGANIZATIONAL BACKGROUND

This chapter is primarily focus on providing background information about historical


development and training and development procedures of Ethiopian Electric Power Corporation
(EEPCo).

3.1 Establishment and Historical Development of Ethiopian Electric Power


Corporation

Electric power was introduced to Ethiopian in the late 19th century, during the regime 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 1922 in order to supply power to small factories that had been established in Addis
Ababa. Consequently, the power supply that had been limited to small factories and the palace
was extended to public places and major roads in the vicinity of the palace.

After the Italians were driven out from Ethiopian in the 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. In the year 1948, an organization that had been vested
with the power to administer the enemy property was evolved to an organization called Shewa
Electric Power. The new organization Shewa although with limited capacity, managed to
increase the power supply not only in Shewa but also other administrative regions. In light of its
function, its name was changed to “Ethiopian Electric Light and Power” in the year 1955. Soon
after its establishment, the supervision and management of the organization was vested in the
Board of Directors appointed by the government. After eight months of its establishment, the
Ethiopian Electric light and power was transformed to the “Ethiopian Electric Light and Power
Authority”. The newly established Authority was to engage in the business of production,
transmitting, distributing and selling of electric energy to the public of Ethiopia and carry on any
other lawful business incidental or appropriate hereto which is calculated directly or indirectly to
promote the interest of the authority or to enhance the value of its properties.

In light of the socio economic development of the country the authority continued to increase the
scope of its operation in order to accommodate new changes. After being in operation for about
50 years in this manner, major changes in the objective and structural set up of the organization
took place relative to the changes in the socio-economic condition of the country. In this regard,
one of the major changes in the economic sector was the transformation of the centralized
command economy to the free market driven economy in the year 1987. In order to
accommodate the new changes in the environment, the Ethiopian Electric light and power
Authority was transformed to the Ethiopian Electric Power Corporation by reorganizing its
functions on the basis of the principles of commercialization and decentralization.

Accordingly, the Ethiopian Electric Power Corporation as public enterprise was established for
indefinite duration by regulation No. 18/1997, and conferred with the powers and duties of the
previous Ethiopian Electric Light and Power Authority. The purpose of the corporation is to
engage in the business of production, transmitting, distributing and selling electrical energy in
accordance with economic and social development policies and priorities of the government and
to carry on any other related activities that would enable it achieve its purpose. At the time of
establishment, the authorized capital of the Corporation was 6.1 billion Birr of which 2.67 billion
Birr was paid up in cash and kind.

Currently, the annual electricity production capacity of the corporation is about 3112 GWH and
the number of customers is about 1.1 million. Although the corporation has been increasing the
number of customers by more than 15% annually, this does not mean that the corporation has
met the demand for electric power. Hence, the corporation is required to think and work
strategically to meet the power supply need of the socio-economic development of the country.

3.2 The fifty years performance on Energy Generation, Customers Number


and Employees Number in EEPCO

When we look at the growth trend on energy generation, during 1970s certain decline had been
registered. This may be due to climate condition and political instability during that period.
Other than this special case, the rate of production has been increasing. The following graph
shows EEPCO’s electric generation for the last fifty years:

Figure 3.1: EEPCO’S Electric Generation for the last 50 years


Source: EEPCO’s 50th golden jubilee special issue, 2006.

As we see from the above graph, electric generation capacity was 35 Gwh in 1956 and increases
significantly and reached to the amount 2890 GWh by the end of year 2006.

EEPCO customers are categorized under three groups namely Domestics, Commercials and
Industrial tariff groups. Most of the customers are found under domestic tariff group. The
customer number at the end of 1950s was around 22 thousands. Then increase up to the end of
1970s. A certain decline had been shown at the end of 1980s. After wards the customer number
increased at an increasing rate. As has been shown in the graph below, the total number of
customers is around 1.1 million by the end of year 2006.

Figure 3.2: Customers Number in EEPCo over the Past Fifty Years
Source: EEPCO’s 50th golden jubilee special issue, 2006

On the other hand, the number of employees in EEPCO can be shown using the following
diagram:

Figure 3.3: Number of Employees in EEPCo over the past Fifty years

Source: EEPCO’s 50th golden jubilee special issue, 2006.

3.3. Ethiopian Electric Power Corporation’s Vision, Mission and Goals

 EEPCo’s Vision:
To be a center of excellence in providing quality electric service at every one’s door and
being competitive export industry.

 EEPCo’s Mission:
To provide adequate and quality electricity generation, transmission, distribution and sales
services, through continuous improvement of utility management practices responsive to the
socio-economic development and environmental protection need of the public.

 EEPCo’s Goals:

In order to provide quality service delivery, EEPCo, has formulated clear goals which would
enable it to satisfy the customers need and plays its role on the power market. The Corporation
has put six the following strategic corporate goals:
 Goal 1: To bring institutional change by implementing the capacity building program.
 Goal 2: TO increase the generation capacity to ensure adequate and reliable power supply
by implementing the generation program.
 Goal 3: To have reliable transmission network to transmit the power produced from
power plants to consumers by implementing the power transmission program.
 Goal 4: To ensure quality and reliable power distribution to consumers by implementing
the power distribution program.
 Goal 5: To increase the electricity supply coverage and access by implementing customer
service program and the Universal Electricity Access Program.
 Goal 6: To enhance the financial capacity of the corporation by executing all scheduled
projects within specified budget and time.

3.4 Training and Development Procedures

3.4.1 In-Service Training Procedures


As stated in the Corporation’s procedure for In-Service training and development, the following
procedures are applicable to all staffs of the Corporation and work units that are involved in
training activity:

General Training Policy: Training will be focused on current and future Corporations needs.
Staff and their managers will drive training programs. A comprehensive training need analysis
will undertaken before any training begins. All training programs will be evaluated practically.
The training policy within the organization will be regularly reviewed to make sure it is in line
with the company’s overall objectives.

Identification of training needs:


1. The training demand may be initiated by the corporation’s nominated body or by the
human resource training and development team by studying internal and external
performance indicator and by considering future demands. Assessment will utilize
information gathered from, but not limited to, the following:
 On-going review of performance appraisal system results,
 Emerging trends,
 Implementation of new programs, technologies or regulations, or
 Opinion survey of employees and supervisors
2. The manpower planning will produce standard skill, knowledge and attitude profile
through conducting task analysis on the job description. And set course objectives for the
standard skill-knowledge profile.
3. The training demand initiated by the trainee shall be considered if the training program is
useful and if it can coincide with the corporation’s human resource demand. Employees
may be required to attend job-related training that meets an identified organizational
needs

4. The Corporation’s work units shall prepare their training need based on:
 Performance appraisal,
 New work method requirements,
 New technology and
 Customer satisfaction survey

Preparation of Instructors and facilities:


 The training and development team will develop or revise the detail course contents and
instructional materials in collaboration with other concerned bodies.
 The course development shall be commented by concerned professionals in the
Corporation, may be outside the corporation and by the department staff.
 The training and development team shall evaluate the capacity of the corporation’s
Institute terms of the training facilities and instructors against the specific training
program. Local facilities/institutes outside the corporation will be used if the corporation
can not accommodate the program.
Selection of trainees:
 The training and development team shall prioritize the work units according to their need
of improvement and their sensitivity in terms of contribution to the achievement of the
Corporation’s goals.
 The training division shall identify and take list of the potential trainees according to their
priority of needs.

Evaluation and Certification


 The trainees shall be examined during, in the end of the training period and after some
period of time through organized evaluation system. It may:
• Observing the trainees on the training period
• Examining the work the trainees have done
• Asking the trainees questions and listening to their answer.

3.4.2 Education Procedures

As stated in the Corporation’s policy and procedure manual regarding education, the following
procedures are applicable to all permanent employees of the corporation:
 The corporation provides educational benefit assistance to employees in line with human
resource planning and on a staff’s request to learn during spare times.

 Reimbursement of cost shall be effected upon satisfactory course completion and passing
grade.

 A staff who needs to improve his/her academic education up to 10 level for which education
fee is fully covered by the corporation.

 A staff who wants to continue his/her education above 10 grade to a higher level education
that is directly related to the job he/she currently assigned and based on the strategic plan of
the corporation, for which 75% of education fee is covered by the corporation.

 The corporation shall not provide educational assistance to a staff who requests to attend
during normal working hours.

 The corporation may provide educational assistance to a staff with full coverage of costs for
post graduate program depending on the demand and supply of the skill as appropriate.

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

Based on the data gathered through questionnaire and interviews, this chapter will focus on
presenting, analyzing and interpreting the data.
4.1 Demographic Information of the Respondents

The first part of the questionnaire consists of the demographic information of the participants.
This part of the questionnaire requested a limited amount of information related to personal and
professional characteristics of respondents. Accordingly, the following variables about the
respondents were summarized and described in table 4.1 and figure 4.1 and 4.2. These variables
includes: number of years the worker worked with the organization, number of years worked on
the current job, age, sex, and the highest educational level achieved.

Table 4.1: Summary of respondent profile by age and gender

Gender

Male Female

Age Count % Count % Total

Under 25 2 4.167 1 2.08 6.25% (3)

25-34 11 22.92 9 18.75 41.67% (20)

35-44 9 18.75 10 20.83 39.58% (19)

45-54 3 6.25 1 2.08 8.33% (4)

55 and above 2 4.167 0 0 4.167% (2)

Total 27 56.25% 21 43.75% 48 (100%)

About 56.25% of the respondents were male and the remaining 43.75% of the respondents were
female. Regarding the age of the participants, the largest group (41.67%) was in 25-34 years age
group. The second largest group (39.58 %) indicated their age were in the 35-44 age group where
as 8.33% and 6.25% indicate their age were in the 45-54 and under 25 age groups respectively.
On the other hand, 2 experienced individuals (4.167%) are reported above 55 years of age
category. From this it is possible to infer that the workforce composition of the respondent are
young and thus may require a strong HRD programs.

Figure 4.1: Service of the respondents in the Corporation and on their Current job

The above figure indicates that the majority (n=38, 79%) of the respondents indicated that they
have been working in the Corporation between 0 and 4. However, 12 (25%) and 9 (18.75%) of
respondents indicated tenure with the Corporation of between 5 and 9 years and 10-19 years
respectively. On the other hand, only 4 (8.33%) individuals indicated that they had been
working in the corporation between 20 to 30 years and no one indicated that the had worked for
more than 30 years. About years worked in the current job, the largest group (n=42, 87.5%)
reported job tenure of 0 – 4 years. Nearly one- third of all respondents (n=15, 31.25%) indicated
that they had been in their current job for 5 to 9 years.

Figure 4.2: Educational profile of the respondents


On the basis of educational qualification, the majority of the respondents are first degree holders
(n=18, 38%) where as 37% and 21% of the respondents are college diploma holders and
technical schools graduate respectively. Only 4 individuals are identified to have high school
graduate and no respondent had the degree of masters or PhD.

Given the fact that the majority of the workforces are young (see Table 4.1) with college diploma
or BA/BSc Degree (see Figure 4.2), it is not doubtful that employees give high concern for their
education and career development. This create burden on the EEPCo in satisfying employees’
such demand and also give an option for EEPCo in enhancing employees’ satisfaction through
designing an effective HRD system that allow employees to be developed in their education and
career. Therefore, to satisfy and retain employees’, EEPCo must induce employees that the
corporation is the best place to develop their education and career.

4.2 Employees’ Satisfaction with Major Aspects of HRD Practices

In this section, employees’ level of satisfaction regarding: EEPCo’s commitment in providing


training and education opportunities, appropriateness of the training programs, employees’
development opportunities with in the corporation, and supervisors/managers guidance and
encouragements for employee development will be reviewed.
Responses were measured on five point Likert scale with 1= Strongly Disagree; 2= Disagree; 3=
Neutral; 4= Agree; and 5 = Strongly Agree. To make easy interpretation, the following ranges of
values are assigned to each scale: 1.50 or less = Strongly Disagree; 1.51- 2.50 = Disagree; 2.51-
3.49 = Neutral; 3.50 – 4.49 = Agree; and 4.50 and greater = Strongly Agree.

4.2.1 Employees’ Satisfaction with EEPCo’s Commitment to HRD

As far as HRD polices with regard to the provision of training and development is concerned, it
is imperative that companies provide the training or skill building needed to improve job
performance; as improve job performance no doubt would translate to higher productivity and
perhaps company’s profits. In this, training needs analysis may be necessary to provide
appropriate trainings. As every body seeks satisfaction in his or her work being able to perform
effectively and efficiently is likely to enhance meaningfulness of work. Improved job
performance is a factor that relate positively with employees’ satisfaction.

Human resource development is the process of helping employees become better at their tasks,
knowledge and experience. There are lots of things that go into this, but training and education
are the main methods at company level. In this sub section, employees’ satisfaction with the
corporation’s commitment for Training and Education will be discussed.

4.2.1.1 Employees’ Satisfaction with EEPCo’s Commitment to Employees Training

To understand employees’ level of satisfaction regarding EEPCo’s commitment to employees


training; at first employees were asked whether they have been given training for the last one
year or not and two statements to indicate their agreement with the statements; the statements
and their responses are summarized in figure 4.3 and table 4.2 below.
Figure 4.3: Provision of Training for the last one year
As we can notice from the above figure, three- fourth (n=36, 75%) of the respondent were not
given any training and the remaining one-fourth (n=12, 25%) had taken training with in the last
one years. According to the interview conducted with the head of training and development
team, it is one of EEPCo’s policies to provide a minimum of 10 hour skills upgrading or
refreshing training per person and per year. Thus, it is possible to say that the corporation’s
training provision is by far below from its own training and development policy
Table 4.2: Summary of employees’ attitude towards EEPCo’s commitment to Employee
Training
The corporation does a good job My organization has active
of providing the training I need programs to upgrade
to improve my job performance. employees’ skills.

Count % Count %
STRONGLY AGREE 2 4.17 2 4.17
AGREE 7 14.58 2 4.17
NEUTRAL 8 16.67 7 14.58
DISAGREE 18 37.5 19 39.58
STRONGLY DISAGREE 13 27.08 18 37.5
TOTAL 48 100 48 100

Table 4.3: Descriptive Statistics of items that measure employees’ attitude towards
EEPCo’s commitment for Employees Training
N Minimum Maximum Mean Std.
Deviation
EEPCo does good job of provided 48 1 5 2.33 1.13
Training to improve my job performance
My organization has active programs 48 1 5 1.19 1.04
to upgrade employees’ skills.

As illustrated in table 4.2; about 37.5% of the respondents disagree with the statement ‘the
corporation does a good job of providing training I need to improve my job performance’ and at
the same time 27 % of the respondents strongly disagree with the statement. Yet, only 4.7% and
14.17% of the respondents replied that they strongly agree and agree with the above statement
respectively. Where as 16.67% (n=8) of the respondent became indifferent with the statement.
Further more, a mean value of 2.33 (see table 4.3) indicates an average response of disagreement
among the respondents for the variable.

Similarly, majority of the respondents (39.58 %) disagree with the idea that the corporation has
active programs to upgrade employees’ skills while 37.5% of the respondents strongly disagree
with the idea. 1.19 mean value of respondents also signifies that respondents were strongly
disagree with the idea. From these we can infer that most the respondents are not satisfied with
the Corporations’ commitment in providing training and support employees need to do their job
effectively. As every body seeks satisfaction in his or her work being able to perform effectively
and efficiently, it is likely to deter employees’ satisfaction with their job.

Under those circumstances where organizations either do not have good ability for providing
training such as good facilities or do not effectively utilize its ability; employees can develop
negative perception towards the corporation’s commitment for employee training. To see
employees’ perception towards the corporations facility for training, employees’ were asked to
rate their degree of agreement with the statement ‘the corporation has good internal facility for
training’, and their response is summarized in figure 4.4 below:

Figure 4.4: Summary of employees’ perception towards the Corporation’s training facility
Majority of the respondents 32% (n=15) agree with the statement ‘Corporation has good internal
facility for training’ whereas only 14% of the respondents strongly disagree with the statement.
This shows that employees’ negative perception towards the corporation’s commitment for
training is not fully explained by poor internal facility of the corporation.

According to interview conducted with head of the corporation’s Training and Development
team; in identifying training needs, EEPCo uses organizational analysis where the need for a
training program is identified by taking in to consideration of the corporation’s short range and
long range goals. Hence, skills and ability that can contribute to the achievement of
organizational objectives are determined. Additionally, task/job analysis is used to determine the
skills and knowledge that jobs demand. According to the head, personal analysis is not being
used in determining training and development needs, even though most literatures recommend as
it is a main tool for integrating the corporation’s and employees’ need for training.

4.2.1.2 Employees’ Satisfaction with EEPCo’s Commitment to Employee Education

One way that organizations can show their commitment for HRD is through providing support to
improve educational level of employees. Education is activities which aim at developing the
knowledge, skills, moral values and understanding required in all aspects of life. Respondents
were asked to indicate their degree of agreement with the statement ‘the Corporation does a good
job of supporting employees to improve their Educational level’ and their response is
summarized in figure 4.5 below:
Figure 4.5: Summary of employees’ response for the Corporation’s supports to improve
their Educational level

As it is possible to observe from the above figure, majority (35.42%) of the respondents strongly
argue that the corporation is not committed for improving educational level of the employees and
at the same time 29.12% of them disagree with the idea. On the other hand, it is only 16.67 %
and 8.33% of the respondents agree and strongly agree with the statement respectively. A mean
value of 2.33 (STD= 1.03) be a sign of respondents’ dissatisfaction with the education supports
provided by EEPCo.

In general, majority of the respondents are not satisfied with the Corporations commitment
neither in providing training to do their job effectively nor supports to enhance their educational
levels. When employees have negative perception towards the corporation’s commitment for
HRD, as one might expect it makes employee to feel that the corporation is not concerning for
their development. For this reason, some employees may think that the organization is not the
best place to develop them.

4.2.2 Employees’ Satisfaction with Appropriateness of the Skills Enhanced


As it is presented in the literature review, HRD is not all about providing training and
development; rather it requires identifying employees need for development and growth and tries
to integrate into HRD practices and programs. Usually employees consider training and
development practice as appropriate when it can contribute to enhance their job effectiveness
(related with their job) or/and improve their chance for promotion.

To determine employees’ level of satisfaction with the appropriateness of the skilled enhanced,
employees’ were given two statements to indicate their level of agreements. The statements and
employees’ degree of agreement is summarized in tables 4.4 and 4.5 below:

Table 4.4: Employees’ satisfaction with the appropriateness of the skills enhanced

The corporation’s training and High priority is given to


development programs improve providing appropriate
my chance for promotion. training.

Count % Count %

STRONGLY 4 8.33 2 4.17


AGREE

AGREE 4 8.33 9 18.75

NEUTRAL 5 10.42 6 12.5

DISAGREE 19 39.58 14 29.17

STRONGLY 16 33.33 17 35.42


DISAGREE

TOTAL 48 100 48 100

Table 4.5: Descriptive Statistics of items that measure satisfaction with the
appropriateness of the skills enhanced
N Minimum Maximum Mean Std.
Deviation
Improve chance for promotion 48 1 5 2.16 1.26
High priority for providing 48 1 5 2.27 1.25
appropriate training

Table 4.6: Correlations between variables: High priority for providing appropriate training
and the corporation’s training and development programs improve my chances for promotion

High priority is
The
given to
corporation's
providing training and
appropriate development
training. programs
improve my
chances for
promotion
Spearman's High priority is given Correlation 1.000 .487(**)
rho to providing Coefficient
appropriate training Sig. (2-tailed) . .009
N 48 48
The corporation's Correlation .487(**) 1.000
training and Coefficient
development Sig. (2-tailed) .009 .
programs improve
my chances for N 48 48
promotion
** Correlation is significant at the 0.01 level (2-tailed).

As the above tables show, the majority of the respondent (39.58%, n=19) disagree with the
statement ‘The corporation’s training and development programs improves my chance for
promotion’. A mean value of 2.16 (see table 4.5) also indicates employees’ dissatisfaction with
the contribution of training programs to their promotion.

On the other hand, 35.42% (n=17) of the respondent strongly disagree that sufficient priority is
not given to providing appropriate training in EEPCo’ at the same time 29.17 % of the
respondent respond as they disagree with the idea. Further more, a mean value of 2.27 (table 4.5)
shows that majority respondents are dissatisfied with the appropriateness of training they have
been given.

A Spearman’s Correlation coefficient between the two variables i.e. high priority for providing
appropriate training and the corporation’s training and development programs improve my chances for
promotion, is 0.487 (see table 4.6). It implies a significant correlation between the two variables.
This indicates that those who disagree or strongly disagree on the first variable also did the same
on the second one. In general, it is possible to conclude that since mass of the respondents
associate training with its little contribution for promotion, they dissatisfied with the
appropriateness of the skills enhanced in the training programs.

4.2.3 Employees’ Satisfaction with Opportunities for HRD

4.2.3.1 Employees’ Satisfaction with the Fairness in Training Opportunities

It is natural that employees would like to have equal access to job-related training opportunities
that would help them improve on their skills and enhance their development and growth.
Denying employees of this would likely demoralize employees who would like to go for
training. Beside, employees would view this as unfair company’s practices. With limited access
to job-related training, employees may not be armed with the necessary skills to do a good job.
Probably, frustration may set in affecting the morale and productivity of employees.

Table 4.7: Respondents’ satisfaction with the fairness in training opportunities


Training programs focus only in Equal access to job-related
some work units of the training opportunities
corporation.

Count % Count %

STRONGLY 21 43.75 6 12.5


AGREE

AGREE 12 25 7 14.58

NEUTRAL 8 16.67 11 22.92

DISAGREE 7 14.58 14 29.12

STRONGLY 0 0 10 20.83
DISAGREE

TOTAL 48 100 48 100

Table 4.8: Descriptive Statistics of items that measure Respondents’ satisfaction with the
fairness in training and development opportunities

N Minimum Maximum Mean Std. Deviation


Training programs focus only in some 48 1 5 3.97 1.10
work units
Equal access to job-related training 48 1 5 2.57 1.23

As for respondents’ satisfaction with the access for training opportunities the majority (43.75%,
n=21) of the respondents strongly agree that EEPCo’s training practices only focus on some
work unities, on the contrary 14.58% of respondents reply negatively with the statement. What is
more explain the respondents’ satisfaction; a mean value of 3.97 (see table 4.8) indicates most of
the respondents understand that training opportunities are limited only in some work units in the
corporation. From this it is possible to conclude that the corporation is not giving fair treatment
in providing training to all its work units. This may create a feeling in employees as less worthy
than other employees who are given high emphasis in the corporations training programs.
Concerning employees’ satisfaction with equal access to job related training opportunities, the
mean value of respondents’ response is 2.57 with standard deviation of 1.23. This indicates that
still employees’ level of satisfaction is less than the average regarding the equal access for
training opportunities. From this one can conclude that in the eyes of respondents the corporation
is not doing justice in creating equal access to job related training programs for all employees.

4.2.3.2 Employees’ Satisfaction with Promotion Opportunities

Opportunities for career growth would help reduce the negative impact of the ongoing war for
talent. Moreover, it enable employees plan for the future and to be better equipped with the right
skills to remain competitive. Providing employees with internal job opportunities is a means of
demonstrating that they can realize their career goals inside rather than outside of the company.
As mentioned in the literature review part, opportunities for mobility within organization are one
of the determinants of employees’ satisfaction. Besides, it enhance employees’ commitment to
the organization; a factor which affects employees satisfaction. Thus, in addition to company
nomination, employees have to be given the opportunity to apply and move to new positions as
vacancies occur.

As for satisfaction with the promotional opportunities provided in the corporation, respondents
were asked to express their level of agreement with the statement that says I am provided with
adequate opportunities for promotion, and their response is summarized in figure 4.6 below:

Figure 4.6: Respondents’ satisfaction with promotion opportunities


As the above figure illustrate, it is only 14.57% of the respondents replied negatively (strongly
agree or agree) with the statement ‘I am provided with adequate opportunities for promotion in
EEPCo’. From the remaining respondents 70.82% respond positively (disagree and strongly
disagree) and 14.58% of them are neutral with the promotional opportunities. On the whole mean
value of 2.16 (see figure 4.6) signifies that respondents’ reaction for the variable is in the range
of disagreement. From this one can recognize that respondents’ judge as they have limited
internal job opportunities to realize their career goals inside the corporation. Consequently, this
reduces employees’ satisfaction and employees’ commitment to the corporation.

4.2.4 Employees’ Satisfaction with Work Place Learning

In addition to the formal training and development programs of organizations, one of the ways
that employees can learn with in an organization is the workplace learning. It may be through
doing challenging and stimulating jobs or/ and from colleagues. In this sub section, employees’
level of satisfaction with work place learning will be presented.

4.2.4.1 Employees’ Satisfaction with the Learning from their Job

Workers develop skills, knowledge and understanding through dealing with the challenges posed
by the work. This can be described as continuous learning. Working in intellectually stimulating
and challenging job and opportunity to work with up-to-date technologies allow employees to
develop while they are doing their job.

The following table (table 4.9), show the respondents’ degree of agreement with the statements
designed to understand their corresponding level of satisfaction with the challenges posed by the
work, knowledge to gain from the work they do for the corporation and opportunities to work
with up-to-date technologies.
Table 4.9: Summary of employees’ satisfaction with the opportunities to learn from their job

I have the My work is There is much


opportunity to work intellectually knowledge to gain from
with up-to-date stimulating and the work I do for my
technologies challenging. organization.

Count % Count % Count %

STRONGLY 9 18.75 12 25 1 2.08


AGREE

AGREE 15 31.25 4 8.33 7 14.58

NEUTRAL 5 10.42 19 39.58 15 31.25

DISAGREE 14 29.12 6 12.5 7 14.58

STRONGLY 5 10.42 7 14.58 18 37.5


DISAGREE

TOTAL 48 100 48 100 48 100

Table 4.10: Descriptive Statistics of items that measure Respondents’ satisfaction with the
their job

N Minimum Maximum Mean Std. Deviation


Access to up-to-date technologies 48 1 5 3.18 1.03
Stimulating and challenging job 48 1 5 3.17 1.34
Knowledge to gain from the work 48 1 5 1.93 0.99

As the above tables clearly demonstrate majority (50%, n=24, mean= 3.18) of the respondents
are satisfied with the opportunities they have to do with up-to-date technologies in doing their
job. As per the interview conducted with the Human Resource Manager & personal observation;
most of employees who are working in the Head and Regional offices have access for computer
and internet. Hence, this surely can significantly influence the respondents view in the issue.
In the same way, the majority of the respondents (39.58%) are neutral with the statement ‘My
work is intellectually stimulating and challenging’. A mean value of 3.17 also indicates as most of the
respondents are indifferent with regard to the challenging and stimulating nature of their job.

In contrast, the majority (52.09%) of the respondents don’t think that there is much knowledge to
gain from the work they do for the corporation. A mean value of 1.93 with standard deviation of 0.98
implicated how much they strongly disagree with the idea. Because of this, obviously employees’ job
value i.e. employees’ attitude towards the usefulness of their job will decrease. If employees perceive that
their job is irrelevant for their growth and development, they will not willing to acquire new skill and be
trained for the job. This ultimately reduces employees’ motivation for HRD programs and the
transferability any newly acquired skills and knowledge. Speaking generally, employees’ satisfaction with
the usefulness of their job for their development and growth is significantly low.

4.2.4.2 Employees’ Satisfaction with Possibilities to Learn from Co-Workers

No matter how much the organization commitment for HRD, it needs the cooperation and
commitment of all employees to be successful. It is natural that no one wants to work with lazy,
reluctant and uncooperative co-workers. There is lot of things that employees can gain from their
colleagues as long as there is culture of cooperation and knowledge sharing among employees.

One of the basic principles of human resource management is to invest in people in order to
develop the intellectual capital required by the organization and thus increase its stock of
knowledge and skills. The knowledge and skills a worker has – which comes from education and
training, including the training that experience brings – generate opportunities for young and
inexperienced employees to learn form their co-workers. Working with colleagues who impress
others with their innovative idea, energy and resourcefulness can motivate and make concerned
others for their personal development too.

As for employees’ satisfaction with the talent and cooperativeness of their co-workers,
respondents were provided with two statements to indicate their degree of agreement i.e. ‘ I have
colleagues who impress me with their innovative ideas, energy and resourcefulness’ and ‘I found
may colleagues very helpful when I encounter difficulties with my work’. Most of the
respondent (31.25%, n=15) were indifferent about their colleagues’ innovativeness and
resourcefulness while 29.12 % disagree with the idea. A mean value of 3 (see table 4.12) also
revealed as the respondents’ perception towards their colleagues’ talent is just indifferent. To be
more precise, majority of employees believe that there is little thing to learn from their
colleagues. In most cases, such employees’ perception developed when their colleagues are in
similar with their own education and experience level.

Concerning their colleagues’ cooperativeness in providing help to address others work related
difficulties; it one-fourth of the respondents do not satisfied or disagree with the idea. Half of the
respondents satisfied with the helps provided with their co-workers and the remaining (23.4%) of
respondents were neutral. The mean value of 3.25 (see table 4.2) is in the range of neutral view
which indicates respondents’ satisfaction was not significantly affected by the factor being
considered. As a whole, colleagues’ level of cooperativeness is not on the level to enhance
employees’ satisfaction.

Table 4.11: Employees’ Satisfaction with Possibilities to Learning from Co-Workers


I have colleagues who impress me I found my colleagues very helpful
with their innovative ideas, energy when I encounter difficulties with
and resourcefulness. my work.

Count % Count %

STRONGLY 4 8.33 8 17.02


AGREE

AGREE 10 20.83 16 33.33

NEUTRAL 15 31.25 11 23.4

DISAGREE 14 29.12 8 16.66

STRONGLY 5 10.41 4 8.51


DISAGREE

TOTAL 48 100 47 100


Table 4.12: Descriptive Statistics of items that measure Respondents’ satisfaction with the
Possibilities to Learning from Co-Workers

N Minimum Maximum Mean Std. Deviation


My colleagues impress me with their 48 1 5 3 1.28
innovative ideas and resourcefulness
My colleagues are very helpful 48 1 5 3.25 1.21

4.2.5 Employees’ Satisfaction with the Management’s Supervision and


Guidance

It is imperative that employees need to have people to whom they could go for help when there
are work-related problems and managers available when they need him/her for help. As it is
clearly stated by Hooi Lai Wan (2007), working with supervisors who actively assisted their
subordinates to address job-related problems as one of the determinants of employees’
satisfaction. Inexperience, new young recruits especially may face difficulties if left on their
own. In addition, managers who show concern would probably have a more cooperative and
motivated workforce- attributes that may make a difference to the bottom line. In short,
managers need to provide assistance to help their subordinates in addressing work-related
problems (Coaching) and identifying their training and development needs (Mentoring).

4.2.5.1 Employees’ Satisfaction with the Coaching practices

Concerning employees’ satisfaction with the coach provided by their supervisors, employees
were asked indicate their degree of agreement with the statements: ‘There are people to whom I
can go for help when I have work related problems’; ‘My manager provides me with the
appropriate amount of guidance’; and ‘My manager is available when I need him/her’ and their
response is summarized in table 4.13 below:
Table 4.13: Employees’ Satisfaction with coaching practices

There are people to My manager My manager is


whom I can go for help provides me with the available when I
when I have work appropriate amount need him/her.
related problems of guidance.

Count % Count % Count %

STRONGLY 13 27.08 4 8.33 4 8.33


AGREE

AGREE 13 27.08 10 20.83 24 50

NEUTRAL 9 18.75 13 27.08 7 14.58

DISAGREE 10 20.83 14 29.16 10 20.83

STRONGLY 3 6.25 7 14.58 3 6.25


DISAGREE

TOTAL 48 100 48 100 48 100

Table 4.14: Descriptive Statistics of items that measure Respondents’ satisfaction with the
Coaching practices

N Minimum Maximum Mean Std. Deviation


I have people to go for help 48 1 5 3.45 1.3
Amount of Managers’ guidance 48 1 5 2.79 1.18
Managers’ availability when needed 48 1 5 3.33 1.09

As the above tables illustrate, more than half of the respondents respond positively regarding the
availability of people to whom they can go for help when they have work related
problems(54.16%, mean= 3.45) and the availability of their manager when they need him/her
(58.33%, mean=3.33). However, with regard to the appropriate amount of guidance provided by
their manager, around 44% (n=21) of respondents respond negatively and the mean value is just
less than an average i.e. 2.79. From this we can infer that the main dissatisfying factor in
coaching practices is inappropriate amount of guidance provided by managers. This could
happen when managers either have no enough information, experience, and/or reluctant to coach
their subordinates. To check how work related information flows affect the respondents’ view
with the amount of guidance/coach provided by their supervisors; employees were given a
statement to indicate their level of agreement which is presented in figure 4.7 below:

Figure 4.7: Employees’ perception towards dissemination of work related information

Table 4.15: Correlations between variables 'my manager provides me with the appropriate amount of
guidance' and 'In my organization the dissemination of information relevant to work is
excellent'
My manager In my
provides me organization the
with the dissemination of
appropriate information
amount of relevant to work
guidance is excellent
Spearman's My manager provides me Correlation 1.000 .746(**)
rho with the appropriate Coefficient
amount of guidance Sig. (2-tailed) . .000
N 48 48

In my organization the Correlation .746(**) 1.000


dissemination of Coefficient
information relevant to Sig. (2-tailed) .000 .
work is excellent
N 48 48
** Correlation is significant at the 0.01 level (2-tailed).
As far as the dissemination of information relevant to work, 60.42% (Disagree and strongly
disagree) of respondents believe that it is not as excellent as they need. Nevertheless 22.91% of
respondents reply positively while 16.67% of them are indifferent with the dissemination of
information.

To see the correlation between the two variables: provision of appropriate amount of guidance
and excellent dissemination of information relevant to work, a Spearman’s Correlation
coefficient was applied. The result showed a significant correlation exists between the two
variables with a correlation coefficient of 0.746. This indicates that those who disagree or
strongly disagree on the first variable also did the same on the second one (see table 4.15). In
general, it is possible to say that poor dissemination of information relevant to work is the reason
that creates respondents’ dissatisfaction regarding to the amount of guidance provided by their
supervisor.

4.2.5.2 Employees’ Satisfaction with Mentoring

Mentoring presents tool that organizations can include as part of comprehensive suite of career
development. Mentoring helps to ensure that employees have the appropriate resources and
guidance to further their careers adequately. Organizations offer mentoring programs as an
effective and low cost aid to employee development. Managers should also focus on helping
employees progress in their career and encourage their professional development. Managers that
support their subordinates’ professional development through ongoing feedback about
performance are likely to stimulate employees’ satisfaction.

Employees were asked to indicate their attitude towards the statements of ‘my manager assists
me to identify my training needs’, ‘my manager encourages me to improve my educational level’
and ‘my supervisor advices me how I can develop my career within the corporation’, and their
response is summarized in figure 4.8 below:

Figure 4.8: Summary of employees’ response regarding Mentoring practices


Table 4.16: Descriptive Statistics of items that measure Respondents’ satisfaction with the
Mentoring practices

N Minimum Maximum Mean Std. Deviation


Identifying Training needs 48 1 5 2.67 1.01
Encouragements for Educational deve’t 48 1 5 2.01 1.19
Advice for career deve’t 48 1 5 2.25 1.10

As regards to mentoring practices, the level of respondents’ satisfaction in descending order is as


follows: managers assist in identifying employees’ training need (25%, mean= 2.67),
supervisors’ advice in developing employees’ career with in the corporation (22.87%, mean=
2.25) and managers encouragements to improve educational level of employees’ (20.83%,
mean= 2.01). In general, majority of the respondents are not satisfied with the guidance,
pragmatic advice and continuing support provided to enhance individual developments.
Specifically, respondents’ dissatisfaction is high regarding the supports and encouragements
provided to improve their educational level.

Given the fact that most of the respondents are either diploma or first degree holders (see figure
4.1), employees’ dissatisfaction can be reason-out with the decreasing support of the corporation
to enhance educational level of employees as their educational level increased. According to
interview conducted with head of human resource training and development, it has been long
time since the corporation stops sponsoring some master or higher level education (like MBA)
except in some electrical engineering or utility management programs. According to the head,
usually the corporation does not sponsor social science fields of studies for higher level studies;
including first degree and second degree studies.

4.2.5.3 Employees’ Satisfaction with Performance Counseling

No matter employees’ perception towards performance evaluation system, one of the factors that
can enhance employees’ satisfaction is existence of performance counseling. Performance
counseling involves assisting the employees to understand his/her own performance, factors
contributing to it, contribution of his/her own strength and weaknesses, and assisting employees
to identify the extent to which he/she can influence the outcome of his/her work and thereby plan
for improving competence and performance.

As of employees’ satisfaction with the performance counseling practice, employees were asked
to indicate their level of satisfaction for the statement ‘The Corporation has good performance
counseling practice which helps me to improve my performance’ and their response is
summarized in figure 4.9 below.

Figure 4.9: Summary of employees’ satisfaction with performance counseling

As it is possible to see from the above figure, 42% of respondents strongly disagree with the idea
that the corporation has good performance counseling and at the same time 34% of respondents
disagree. However 22% respondents reply positively for the statement ‘the Corporation has good
performance counseling practice which helps me to improve my performance’ and only 2% of
them are indifferent with the statement. Thus, it is possible to say three- fourth of the respondents
are dissatisfied with the existing performance counseling practices of the corporation. According
to the interview conducted with human resource officials; employees have access to the results of
performance evaluation and there is also procedures for handling employees complain with the
result or the evaluation process. However, it is possible to conclude as there is no real
performance counseling and guidance practice so far.

4.3 Employees’ satisfaction with HRD Climate

The goal of HRD is to improve the performance of organizations by maximizing the efficiency
and performance of people. HRD is going to develop knowledge and skills, actions and
standards, motivation, attitudes and work environment. Managers, employees and organizational
culture all plays a significant role in the development of good HRD climate. Creating good HRD
climate aims at maintaining profiles of organizational health, monitoring organizational, conflict
management, creation of strong teams and so on, and establishing processes that build a climate
to promote enabling capabilities in the organization.

In this section employees’ satisfaction with the HRD climate will be discussed. Specifically, the
level of employees’ satisfaction regarding the sprit of cooperation among employees,
competition among employees, employees’ participation and finally employees’ satisfaction with
the overall climate will be presented.

4.3.1 Sprit of Cooperation among Employees

HRD tries to improve the performance of organizations by maximizing the efficiency and
performance of people. For this purpose good sprit of cooperation among employees is
indispensable; employees should concerned to the work of other’s too, willing to share
knowledge and information for their colleagues and able to work as strong team.
As of the level of employees’ satisfaction with the sprit of cooperation among employees;
employees were asked to indicate their degree of agreement with three statements: the statements
and respondents’ response is summarized in tables 4.17 and 4.18 below:

Table 4.17: Summary of employees’ attitude towards the sprit of Cooperation

In my organization I find my colleagues Team work is


people show little willing to share good in my
interest in each other’s knowledge and organization.
work. information.

Count % Count % Count %

STRONGLY 7 14.58 8 16.67 14 29.16


AGREE

AGREE 4 8.33 14 29.16 13 27.08

NEUTRAL 19 39.58 22 45.83 12 25

DISAGREE 10 20.83 4 8.33 7 14.58

STRONGLY 8 16.67 0 0 3 6.25


DISAGREE

TOTAL 48 100 48 100 48 100

Table 4.18: Descriptive Statistics of items that measure Respondents’ satisfaction with
employees’ cooperation

N Minimum Maximum Mean Std.


Deviation
People show little interest in each other’s work. 48 1 5 2.16 1.24
Colleagues willing to share knowledge and 48 1 5 3.54 0.84
information.
Team work is good in my organization. 48 1 5 3.58 1.23

As it is clearly presented in the above tables, majority of the respondents respond positively for
the statements describing the existing the sprit among employees. For the statement ‘In my
organization people show little interest in each other’s work’, majority (39.58%) of the respondents are
indifferent while 37.5% of the respondents argue that we show interest in each other’s work. A mean
value of 2.16 also indicates as most of the respondent don’t think that people show little interest in each
other’ work in the corporation. Regarding the sharing of knowledge and information culture and team
work sprit, mass of the respondents perceive the existing culture positively. The mean values of 3.54 and
3.58 respectively, show how strongly the respondents agree with the statements. In general, it is possible
to infer that the existing sprit of cooperation among employees is in good situation to enhance employees’
satisfaction.

4.3.2 Competition and Participation

The primary purpose of HRD is to help the organization to increase its “enabling” capabilities.
These include development of human resources, development of organizational health,
improvement of problem solving capabilities, development of diagnostic ability (so that
problems can be located quickly and effectively), and increased employee participation and
commitment. Regarding respondents’ reaction with the competition among employees and
employees participation in the corporations affair, three statements were given to respondents to
indicate their corresponding degree of agreement and the questions and their response is
summarized in table 4.19 below:
Table 4.19: summary of respondents’ attitude towards competition and participation
In my My organization In my organization
organization there actively collects employees are active
is good ideas for in making
competition improvements from suggestions about
among employees. employees work improvement.

Count % Count % Count %

STRONGLY 4 8.33 1 2.08 4 8.33


AGREE

AGREE 2 4.16 5 10.42 4 8.33

NEUTRAL 10 20.83 5 10.42 8 16.67

DISAGREE 24 50 22 45.83 19 39.58

STRONGLY 7 14.58 15 31.25 13 27.08


DISAGREE
TOTAL 48 100 48 100 48 100

Table 4.20: Descriptive Statistics of items that measure Respondents’ satisfaction with
employees’ cooperation

N Minimum Maximum Mean Std. Deviation

Good competition among employees 48 1 5 2.37 1.08


Collect information for improvement 48 1 5 2.06 1.01
Employees are active in making suggestions 48 1 5 2.31 1.20

Half of the respondents disagree with the statement that ‘In my organization there is good
competition among employees’ there is good competition among employees in the corporation
while 20.83 % of the respondents are indifferent and the mean value is 2.37 with standard
deviation of 1.08. As most respondents describe for the questions which demands to give their
suggestion for improving HRD practices of the corporation; ‘the corporation’s promotional
practice is primarily based on experience and gives very little emphases for employees’
performance’. This may create an environment where no or little competition for performance
among employees.

Concerning the corporation’s practices in collecting information from employees for


improvement, and employees’ participation in making suggestions; 76.25 % and 66.66%,
respectively, of the respondents reply negatively with the idea. The mean values of 2.06 and
2.31, respectively, also indicate as mass of respondents disagree with the ideas. This shows that
the corporation does not cerate an environment to fully exploit the potential of its employees
since it deny access for employees to give their suggestions for improvement. It is quite clear
that such environment limits the corporation’s diagnostic ability that would help to locate
problems so quickly and effectively.
4.3.3 Employees’ Satisfaction with overall HRD Climate

To understand the level employees’ satisfaction with the overall HRD climate of the corporation,
respondents were given three statements (My organization is the best place to develop myself,
Employees are leaving the corporation since the corporation is not good place to develop
employees’ profession and career, and My organization is unable to retain (maintain)
experienced and educated employees) to indicate their degree of agreement and their response is
summarized in figure 4.10 below.

Except 8.33% of respondents that are indifferent, all other respondents reply either disagree or
strongly disagree for the statement ‘My organization is the best place to develop myself’ and the
mean value is 1.68 with standard deviation of 0.62. From this we can infer that most of the
respondents feel as they are working in an environment/organization that deters their
development. Further more, it is possible to assume most of the respondents have low
commitment for the corporation which could results most of respondents to be ready to leave the
corporation take other options.

Figure 4.10: Summary of respondents’ attitude towards the overall HRD climate of the
corporation
Table 4.21: Descriptive Statistics of items that measure Respondents’ overall attitude
towards the corporation

N Minimum Maximum Mean Std. Deviation


Best place to develop myself 48 1 5 1.68 0.62
Employees are leaving since the corporation 48 1 5 3.39 1.05
is not good place develop employees
Unable to retain talented employees 48 1 5 4.47 0.92

As it is clearly seen in the above figure 4.8 and table 4.20 majority of the respondent agree with
the statements ‘Employees are leaving the corporation since the corporation is not good place to
develop employees’ and the mean value of their response is 3.39 with standard deviation of 1.05.
Majority (52.04%) of respondents reply positively with the statement, 29.17% of the respondents
reply negatively and 18.75% of them are indifferent with the idea. Therefore, it is possible to
claim that more than half of the respondents believe that some employees are leaving the
corporation since the corporation is not good place for most of employees to develop their career.

Further more, more than 90% of respondents agree that the corporation is not competitive to
retain experienced and educated employees. Specifically, 64.58% and 27.08% of respondents
reply as they strongly agree and agree, respectively, with the statement ‘My organization is
unable to retain experienced and educated employees’. According to one of the principles of
HRD, organizations should invest in people only to develop the intellectual capital required by
the organization and thus increase its stock of knowledge and skills. Therefore, an organization
that invests in people but not able to retain is not increase its stock of knowledge and skills. With
the same logic, EEPCo is not increasing its stock of knowledge and skills since it is not able to
retain its experienced employees. In general, the corporation is not in the right truck to achieve
the primary objective of HRD i.e. building enough stock of knowledge and skills since it is not
able to retain its employees.

Having analyzed the respondents’ satisfaction with the HRD practices of the EEPCo, the
following discussion will focus on the data collected from the in-depth interviews that was
conducted. An attempt was made to identify HRD practices that enhance employees’ satisfaction
and presented in tabulated form for easier reference and understanding:

Table 4.22: Summary of Interview Results

HRD Practices Result


Training Delivery The emphasis is more classroom training and focus on
closing competency gaps
Types of Training Induction training, Basic training and Counterpart
trainings are the major types. But Specialized trainings,
Extended trainings, Training for special groups, and
Leadership & management trainings are very minimal.
Induction Training Given for new recruits from technical and vocational.
Training and development team and line departments are
responsible.
Training Plan Yes. Prepared by training and development team in
discussion with each work units.
Training Schedule Continuous throughout the year.
Alternatives to Training Training manual and Coaching. But no; job rotation, self-
training and mentor-mentee system.
Identification of Training Based on Organization and Task analysis methods.
needs
Training Budget Based on annual training needs.
Budget for Self Development No
Training Opportunities Very much dependent on immediate superior. Not
necessarily equal.
Strategic Training Have not established a strong role in aligning individual
goals with organization strategies.
Outsourcing Training Minimal. Since many trainings are job-specific that can
be provided by the corporation’ training institution.
Mentor –Mentee system No
Job – Rotation/ Multi skilling Minimal
Management Development No
Program
Promotional Opportunities Most of the time through appointments.
Encouragement for Self- No
development such as pursuing
Master degree
Career Path Guidance No. employees should try to gauge their own career path
based on the organizational structure.
Performance Counseling No
Sponsorship (for education) Up to grade 10 100% sponsorship. Sponsorship for
higher level studies is limited; only when it is related
with the current job of employees.
Developing Knowledge- No
sharing Culture
Organizational Diagnosis Minimal

CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
Based on the data analyzed and interpretation in chapter four of the study, the following
conclusions and recommendations are made.

5.1 Conclusions

The following are the major conclusions of the study:

 Respondents are not satisfied with the Corporation’s commitment neither in providing
training to do their job effectively nor support to enhance their educational levels. (Mean
values of 1.76 and 2.33 respectively). Especially, respondents were very discontented
with the Corporation’s commitment in enhancing employees’ education level. As most
respondents write in open ended questions, there is minimal support from the Corporation
for continuing higher studies unless it is in engineering field. When employees have
negative perception towards the corporation’s commitment for HRD, as one might expect
it makes employees to believe that the Corporation is not concerning for their
development. Furthermore, it reduces employees’ satisfaction and moral. For this reason,
some employees possibly think that the organization is not the best place to develop
them.

 The majority of respondents agree with the EEPCo’s good internal training facility at its
Training and Development Center, although the Center focused in providing technical or
engineering trainings only. As most of my respondents were from outside engineering
profession, three-fourth of respondents replied as they were not taken any training with in
the last one year while the Corporation has minimum hour skill up-grading or refreshing
training standards to be given per person per year. It indicates that the Corporation’s
training provision is by far below even from its own minimum hour standard. In addition
to this alternative options for training such as job rotation, self-training and mentor-
mentee system are very minimal in the Corporation. According to the interview data
analysis, the Corporation is highly committed in providing Induction and Basic skill
trainings, but not for extended trainings, Special group trainings and Leadership &
Development programs. This make the Corporation’s training practices not able to cut
across different levels (in experience) of staffs.
 It has been shown in the analysis that respondents strongly agree that EEPCo’s training
and development programs focus only on some work unities (mean=3.97). This implies
that in the view of respondents the Corporation is not giving fair treatment in providing
training to all its work units. This can cause a feeling in employees as less worthy than
those employees who are been given emphasis in the Corporations training practices.

 The study reviled that the respondents were discontented with the appropriateness of the
skill enhanced through the training programs since they recognize training programs as
having little contribution to their promotion and personal development with in the
Corporation (mean=2.27). According to interview data analysis, person analysis is no
widely used during training need assessments. Moreover, the Corporation’s strategic
training plans have not established a strong role in aligning individual goals with
organization strategies since it is only based on the need to the Corporation.

 As far as employees’ level of satisfaction with promotional opportunities provided in the


Corporation, a mean value of 2.16 shows that respondents believe as they have limited
internal job opportunities to realize their career goals inside the Corporation. Hence, it
can reduce employees’ satisfaction as well as employees’ commitment to the
Corporation. Analysis with open ended questions and interview also reviled that much of
the Corporation’s promotion is through appointments. Therefore, promotion opportunities
are poorly related with employees’ training record and performance.

 In relation to employees’ satisfaction with the management’s supervision and Guidance;


respondents were dissatisfied with the amount of guidance provided by their managers
(mean= 2.79). Based on correlation analysis made, it is found that poor dissemination of
work relevant information in the Corporation is the reason for their discontent with the
amount of guidance provided by their managers.

 Mentoring can help managers to ensure that employees have the appropriate resources
and guidance to further their development adequately. However, respondents are not
positively reply with the mentoring practices, specifically: assistance in identifying
employees’ training needs, encouragements to improve their educational level and
advices how they can develop their career within the Corporation.

 Pertaining to Performance Counseling, there are no formal performance counseling and


guidance practices in EEPCo. As result, employees are left alone to assist themselves in
understanding: their own performance, factors contributing to it, contribution of their
own strength and weaknesses and the extent which they can influence the performance.
Obviously, this would makes very difficult to identify development needs of subordinates
and to draw a systematic plan of action

 Respondents are not satisfied with the opportunities of learning around their Work Place.
Specifically:

 The respondents don’t think that there is much knowledge to gain from the work they
do for the corporation. A mean value of 1.93 with standard deviation of 0.98 implicated
how much it strongly disappointed the respondents. Apparently, it reduces employees’
job value. From this it is possible to say that respondents are not satisfaction with the
usefulness and contribution of their job for career development and growth.

 Similarly concerning their colleagues’ cooperativeness in providing help to


address others work related difficulties; one-fourth of the respondents are not
satisfied with the idea. The overall response indicates neutral view of respondents
(mean=3.25).

 The following major findings reviled respondents’ negative perception towards the
overall HRD climate:

 The sharing of knowledge and information culture and team work sprit, majority of the
respondents perceives the existing culture positively (mean values of 3.54 and 3.58
respectively). However, most (39.58%) of respondents are indifference with the
statement ‘In my organization people show little interest in each other’s work’.

 The corporation’s promotional practice is primarily based on experience and


gives very little emphases for employees’ performance. This creates an
environment where no or little competition for performance among employees.
 With regard to the Corporation’s practices in collecting information from
employees for improvement and employees’ participation in making suggestions;
respondents replied negatively (mean values of 2.06 and 2.31, respectively).

 The majority of the respondents believe that the corporation is not the best place to
develop them (mean=1.06). More importantly, respondents also believe that employees
are leaving the Corporation since the Corporation is not good place to develop
employees.

5.2 Recommendations

In light of the above conclusions the following recommendations are forwarded:

 In order to improve the corporation’s commitment for HRD; complete faith and support
of top management is essential. Managers at all levels will support HRD efforts only
when top management considers employees as the greatest assets of the Corporation.
Therefore, first and for most, it is necessary to have awareness creation programs for top
officials, line managers and employees regarding the need and importance of HRD for
the Corporation. The corporation can become dynamic and grow only when employees’
capabilities are continuously acquired, sharpened and retained. Through comprehensive
HRD practices the corporation can achieve its goals and satisfy and retain employees. It
must be clear that HRD is not the responsibility of Training and Development
Department of the Corporation only; it is the responsibility of all managers too.

 It is understandable that all work units do not need equal emphasize for EEPCo’s
training programs since some work units such as Generation Construction, Generation
operation and Distribution System are strategically more important. But it is also
necessary to make sure that some work units are not totally forgotten at the same time.
Success of the Corporation can not guarantee without improvement and developments in
its all areas work units. Marketing and sales, Finance & supply chain, General Service
and Management & Leadership are also work units which can enhance or deter the
success of the Corporation. So that It is strongly necessary for the Corporation to
prioritize and consider all work units in its training practice.

 Beyond meeting the Corporation’s HR need, the HRD practices should also focus on
individuals and satisfying their needs for career growth and development. At first place
HRD is not all about providing training rather it should aimed at matching the
organizational need for HR with the individual needs for career growth and development.
Secondly, HRD practices must necessarily focus on individuals since all the strength of
Teams and the organization must first embed into individual employees. For this
purpose:

 Person Analysis during training need assessment is necessary, in view of the fact
that it is very important tool for incorporating individual needs into HRD
practices.

 Education support, especially for higher studies, should not unnecessarily be


limited in Electrical Engineering fields. Big organizations like EEPCo needs high
level professionals in diversified professions such as management, marketing,
finance and other. It is also important to satisfy and retain talented employees.
 Performance counseling is also very essential to support employees in improving
their job performance. Furthermore, it helps to identify individual employees
training needs.

 Most importantly, HRD should be based on career development which helps the
Corporation achieve its objectives and the employees achieve maximum self
development.

 In order to make sure the Corporation’s Training Practices are designed to cut across all
levels of staffs (new and experienced), it is important that:

 The Corporation’s training practices should incorporate not only induction, basic
and counterpart trainings but also Specialized Trainings (based on Training Needs
Assessment), Training for special groups, and Leadership and Development
programs.

 Particularly, leadership and development programs are necessary to enforce


management development with in the Corporation.

 While individuals should be expected to take a considerable degree of responsibility for


managing their own development, they need the help and support of their line managers
and the organization. So it is so advisable to have programs to support self-initiated
development of employees. This could be done through sponsoring external training
programs.

 Training programs and job performances should strongly connected with promotional
opportunities of employees so that employees can clearly witness the contributions of
training programs and their performance for personal development. Although promotion
based on experience is way of acknowledging employees experience; training records
and job performances of candidates should not be disregarded. This helps to enhance
employees’ value for training and creating competitive environment among employees.
 In order to enhance employees’ participation and belongingness; it is advisable to design
mechanism where employees can forward their suggestions freely like suggestion boxes.
Regular Monitoring -appropriate mechanisms should be created for continuous review of
progress in the implementation of HRD. Necessary changes or improvements should be
carried out on the basis of such reviews

 In the long run, in order to raise employees’ satisfaction and commitment; giving
employees a sense of purpose in the workplace, granting employees opportunities to act
upon their commitment, and offering practical support to learning are very important. In
this regard the following steps are proposed:

 Develop and share the vision – Trainings which focused exclusively on


organizational mission, value and beliefs will lead to more employees with shared
common vision and greater levels of institutional trust among employees.
Therefore, the Corporation can win the trust and commitment of employees to the
organization.

 Empower employees – provide ‘supported autonomy’; freedom for employees to


manage their work within certain boundaries (policies and expected behaviors)
but with support available as required.

 Adopt a balanced approach for HRD practices where employees can supported to
develop themselves in Training- based, Relation - based and Experience - based
(development in role) approach.

 Regular Monitoring- Appropriate mechanisms should be created for continuous


review of progress in the implementation of HRD. Necessary changes or
improvements should be carried out on the basis of such reviews.

 Adopt a facilitative style of management in which responsibility for decision


making is ceded as far as possible to employees.

 Provide employees with a supportive learning environment where learning


capabilities can be discovered and applied, e.g. peer networks, supportive policies
and systems, protected time for learning.
 Use coaching techniques to draw out the talents of others by encouraging
employees to identify options and seek their own solutions to problems.

 Guide employees through their work challenges and provide them with time,
resources and, crucially, feedback.

 Recognize the importance of managers acting as role models.


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Annex 1: Questionnaire

ADDIS ABABA UNIVERSITY


SCHOOL OF BUSINESS AND PUBLIC ADMINISTRATION
MASTERS OF BUSINESS ADMINSTRATION (MBA) PROGRAM
QUESTIONNAIRE TO BE FILLED BY STAFFS
Researcher: Desalegn Amlaku (Contact Address: 09-11-02-56-48)
Research Topic: - Human Resource Development Practices: Enhancing Employees’
Satisfaction (Ethiopian Electric Power Corporation)
Dear Respondents:-
I would like to express my sincere appreciation for your generous time and honest and prompt
responses.
Objective:
This questionnaire is designed to collect information about the level of employees’ satisfaction
with the corporations’ Human Resource Development practice. The information shall be used as
a primary data in my case research which I am conducting as a partial requirement of my study at
Addis Ababa University for completing my MBA under the Faculty of Business and Economics.
Therefore, this research is to be evaluated in terms of its contribution to our understanding of the
practices of Human Resource Development in contemporary Ethiopia and its contribution to
improvements in these practices.
General Instructions
• There is no need of writing your name.
• In all cases where answer options are available please tick (√) in the appropriate box.
• For questions that demands your opinion, please try to honestly describe as per the
questions on the space provided
Confidentiality
I want to assure you that this research is only for academic purpose authorized by the Addis
Ababa University. No other person will have access to data collected. In any sort of report I
might publish, I will not include any information that will make it possible to identify any
respondent.
Thank you again!!!
Section I: Participant Information
1. Sex: Male Female
2. Which of the following age categories describes you?
Under 25 25-34 35-44 45-54 55 and above
3. Number of years you have worked for the corporation (in years) :
0-4 5-9 10-19 20-30 30 years or more
4. How long have you worked on your current job? (In years)
0-4 5-9 10-19 20-30 30 years or more
5. Educational Qualification:
High school graduate Technical school graduate
College Diploma BA/BSc Degree
Masters Degree PhD
Other (please state______________________
6. Your field of specialization for you highest educational status____________________
7. Current position (job) in the corporation _______________________________________
8. In which department are you currently working? _______________________
9. Do you think you assigned in your profession?
Yes No
10. Have you been given training for the last one year?
Yes No
11. Have you ever been sponsored by the corporation to attend any training or educational
programs out side the corporation?
Yes No

Section II: Questions related to HRD practices

Listed below are statements about the practices of Human Resource Development of the
corporation. Please indicate your level of agreement with the statements so that your answers to
these questions will enable the researcher to assess what you think about the practices of human
resource development in your corporation.
Agree
Strongly

Agree

Neutral

Disagree

Disagree
Strongly
1 The corporation does a good job of providing the training
/skill building I need to improve my job performance.
2 I am given the training and support I need to do my job
effectively.
3 High priority is given to providing appropriate training.
4 Good internal facility for training.
5 My organization has active programs to upgrade employees’
knowledge and skills.
6 The corporation does a good job of supporting employees to
improve their Educational level.
7 The corporation’s training and development programs focus
only in some work units.

8 The company does a good job of providing opportunities for


development and growth for all employees.
9 I am given opportunities to improve my skills in the
corporation
10 Employees have equal access to job-related training
opportunities.
11 I have the opportunity to work with up-to-date technologies.
12 I am provided with adequate opportunities for promotion.
13 The corporations training and development programs
improves my chance for promotion.
14 There are people to whom I can go for help when I have work
related problems.
15 My manager provides me with the appropriate amount of
guidance.
16 My manager is available when I need him/her.
17 My manager assists me to identify my training needs.
18 My manager encourages my professional development.
19 My manager encourages me to improve my educational level.
20 My supervisor advices me how I can develop my career
within the corporation
21 I have colleagues who impress me with their innovative
ideas, energy and resourcefulness.

22 My work is intellectually stimulating and challenging.


Agree
Strongly

Agree

Neutral

Disagree

Disagree
Strongly

23 There are many opportunities and freedom in my work to explore


and try out new ideas.
24 I frequently encounter non-routine and challenging work in my
organization.

25 There is much knowledge to gain from the work I do for my


organization.

26 I found my colleagues very helpful when I encounter difficulties


with my work.

27 In my organization people show little interest in each other’s


work.

28 I find my colleagues willing to share knowledge and information.

29 Supervisors/ team leaders support employees’ effort to


learn.

30 In my organization there is good competition among


employees.

31 Team work is good in my organization

32 My organization actively collects ideas for improvements


from employees

33 In my organization employees are active in making


suggestions about work improvement.

34 The Corporation has good performance counseling practices


which help me to improve my performance.

35 In my organization the dissemination of information


relevant to work is excellent.

36 My organization is the best place to develop myself.

37 Employees are leaving the corporation since the


corporation is not good place to develop employees’
profession and career.

38 My organization is unable to retain (maintain) experienced


and educated employees.
Part III. Additional Questions
1. In your opinion, do you think that employees are being benefited from human resource
development practices of the corporation?
Yes No
2. What is your reason for question No. 2 above?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________________________________________________________
3. In your opinion, do you think that human resource development opportunities influence
employees’ job satisfaction in your organization?
Yes No
4. In your opinion, what are the real problems that you observe regarding human resource
development practices of the corporation?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
____________________________________________________________

5. Would you please suggest if there is anything to be changed with regard to the current
human resource development practices of the corporation?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
______________________________________________________

Thank you again for completing the questionnaire!


Annex 2: Interview Questions

INTERVIEW QUESTIONS
WHICH IS GOING TO BE ANSWERED BY
TRAINING AD DEVELOPMENT DEPARTMENT HEAD OF EEPCo

1. What opportunities are employees getting in your organization to develop job-related


knowledge and skills?
2. What are ways of improving employee competency level and organization’s performance
other than training in EEPCo? How the corporation support employees learning and
development?
3. How employees are being benefited from HRD of the corporation?
4. How training and development needs determined in the corporation? How you
department try to incorporate employees’ interest in training and development programs?
5. What is your base for selecting appropriate trainees for appropriate training?
6. Do you think employees’ personally benefited beyond improving their job performance
in the training programs? Do you think the corporations training programs are improving
employees’ employability (market value)?
7. As to your understanding what is the view of top management towards training and
development? Do you think the top management gives enough emphasis for employees’
development?
8. Does the corporation allot sufficient funds to carry out training program effectively?
9. Do you think that the corporation gives enough emphasis for the development of all
employees in the corporation?
10. Does the corporation have the right trainers who have adequate technical proficiency and
skills for the right trainees?
11. Who are the potential trainers of the corporation?
12. What are the methods employed for developing management abilities?
13. How the corporation is doing in improving the leadership abilities managers?
14. Why do you think the corporation educational sponsorship programs are only limited in
very few areas? E.g. Why the corporation stop sponsoring employees’ in MBA program?
15. How the corporation is doing in improving the sprit of team work?
16. What are the types of management development programs being used in the corporation?
17. What is the role of line managers in human resource development practices of the
corporation?
18. How your department try to integrate human resource functions to support HRD system
of the corporation?
19. Do you think the corporation is a good place for growth and development of all
employees?
20. To what extent do managers of employees at all levels in the organization have
appropriate skills in general managerial principles, communications, group dynamics, and
team building?
21. What formal and informal opportunities exist for professional as well as personal growth
and development?
22. To what extent are employees trained and coached to attain high performance?
23. What formal and informal opportunities exist for group interactions to improve group
processes and group cohesion?
24. How are achievements of individuals, work groups, and those of the entire organization
celebrated?
25. What formal and informal opportunities exist for employees to discuss their career goals
and progression toward those goals with managers?
26. To what extent is information about career moves and career path available and
communicated?
Annex 3: Organizational chart

Management Board

Internal Audit Team

Chief Executive
Officers

Corporate Planning Corporate


Team Communication

Corporate Ethics
Corporate Legal
and Anti-corruption
Affair Team

Gene Sales Finance Service


Gener TS Distrib Human
TS &
ratio ation operat ution
Constru Resource
n& ion system supply
opera ction
const chain
tion
ructio
n

Organization system Dev.& HR


Planning Team

Corporate HR Administration
Team

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