ASSESSMENT THE PRACTICE OF OUTSOURCING NON-CLERICAL JOBS IN COMMERCIAL BANK OF ETHIOPIA (CBE)

Abstract

Outsourcing is simply acquiring a product or service from outside supplier rather than producing in the organization. Outsourcing in Ethiopia is actually in its infant stage. Recently the Commercial Bank of Ethiopia has begun to outsource non clerical jobs. Even though each post has its own service level standards that are agreed between the bank and the service provider, managers are frequently complaining about the services provided. The main objective of the research is assessing the effectiveness of outsourcing of non clerical jobs. In order to make the study manageable it is confined to West Addis Ababa District. In this study descriptive research design is adopted. Both primary and secondary data sources were used The primary data were collected through questionnaire that contains both open ended and close ended questions as well as structured interview. Secondary data were collected by reading procedures, letters and bulletins of the bank. The population of the study was all managers in the district office and branches. In order to collect data the designed questionnaire were distributed among the population and are collected after duly filled by respondents. The analyses of responses from the questionnaires are carried out by using SPSS. The research reveals that outsourcing of non clerical posts is effective in minimizing management’s time and effort in various HR related activities and enables them to focus on the bank´s core business activities. But their involvement has to be further minimized particularly in the process of employee administration. However, the service quality is below the service level standard and the service provider is not effective in supplying the required employees as per the contractual agreement. Therefore the bank has to ensure the service provider strictly follows the contractual agreement and the service level standard of the bank in supplying employees and ensures the service quality.