PRACTICES AND CHALLENGES OF MANAGEMENT DEVELOPMENT AT THE COMMERCIAL BANK OF ETHIOPIA

Abstract

The aim of this research was to assess the practice and challenges of management development programs of the Commercial Bank of Ethiopia. For this purpose a sample of 113 respondents were drawn through stratified random sampling technique. The respondents were middle level managers selected from the Head Office of the Bank, districts and branches located in Addis Ababa City. In this regard Self-administered questionnaires and interviews were used to gather data. Data obtained through questionnaires were analyzed with descriptive statics (percentages and frequencies). Moreover, the data obtained using interviews have been analyzed in line with the literature review and as well as against the data collected from respondents via questionnaires. The analysis indicated that there was no equal awareness among managers over the strategic business objectives of the Bank. In the meantime it was reported that there was less follow-up of the management with regard to the activities of the management development programs. Lack of competent resource persons/facilitators and unavailability of motivation among managers were a few limitations indicated in the findings too. The study further revealed that there were gaps in the views of the interviewees and respondents justifying the existence of bottlenecks in the management development processes. Inadequate management development needs assessment and poor design of programs was also prevalent. The majority of the respondents reflected their opinions that no MD evaluation was taking place. This position was supported by the interviewees as well. More than anything else, need analysis is the key to receive due consideration as it is the basis for all other MD processes. Given the solutions suggested for the success of MD programs in the recommendation part of the study, it is crucial for CBE to pay due attention for the preparation of a systematic and well-planned needs assessment. This of course has to be followed by stetting of achievable objectives, elegant design, coherent delivery and effective evaluation system. In general to do this and get the most out of the MD programs, the full support and close oversight of the management is unquestionable.