SCHOOL OF BUSINESS &

ECONOMICS

DEPARTMENT OF BUSINESS ADMINISTRATION

Prepared By: Zediba Muhidin

ID No:- 0006/11

Submitted to: Department of Business Administration

Submission Date: November, 2013

PART ONE

13
 1. Organizational Report
1.1. Background of the Organization

Cooperative Bank of Oromia was legally established as Share Company

in 2004 according to G.C to conduct banking business through what
Ethiopian. Cooperative bank of Oromia has about 210 branches
through out the country and it also has over 3000 competent
employees.Torban o branch is one of the newly opened second branch
which were opened in October 12, 2010 accrounding to G.C in Adama
town. Now a days at this branch about 21 employee are working and
also about 200-300 customers are served daily from Monday up to
Saturday for full working hours.

Cooperative bank of Oromia provide different service like saving,

transferring money and withdrawal from deposit and share selling. Like
that of other CBO branch, Torban oboo branch render different services
for individual and groups like sole proprietorship, individuals traders
and private limited company, partnership, share colleges, religious
organization and other public enterprise. It also provides special
account types interest bearing and non-interest bearing deposit for
Muslims peoples those who do not need interest.

1.2. Cardinal issues (Mission, Vision, Values and

objectives)

Mission

“To provide modern, efficient, competitive, diversified and profitable

banking services at domestic and international levels, to a continuously
growing number of customers in a socially responsible manner”

To provide full-fledged and customer responsive banking services for

cooperative societies, individuals and other entities with social

13
emphasis to agricultural and agro based business financing and to
maximize share holders value through use of competent and disciplined
employees visionary leaders, and modern banking technologies.

Vision

“To be the strongest and most preferred Bank of the people”

Core Values

 Integrity
 professionalism
 Dynamism
 Excellence
 Accountability
 Impartiality
 Team sprit
 Social Responsiveness

Objectives
 To meet the needs of the emerging private sector for quality and
dependable domestic and international banking services
 To expand and diversify commercial banking services in response
to growing demands of customers, and
 To contribute towards the economic and social development of the
country and to operate profitably in sustainable manner

1.3. Organizational Structures

13
 The organizational structures of CBO, Adama branch has a network of
hierarchy of interrelation ship throughout the office based on the chain
of command. In this hierarchy of the organization the head managers of
the organization has the task of guidance and supervise each activity of
the CBO Adama Branches.

In the absences of head managers Assistance branch managers serve as

branch manager and the other members are managed under assistance
managers of the banks.

Branch Manager

Assistance Branch
Manager

Casher International
Accountant Auditor Checker & Loan
Banking
Maker officer
Department

Graduate IBD Janitors

Trance

1.4. The extent to which the Organization Realizing its

Vision

13
The Extent of Cooperative bank of Oromia in Adama Branch General
gives/provides the following major services of the Bank, among others,
are:
 Co-ordination among branches managers and employees of
the organization
 Offering quality service to the customers of the organization
and aspiring branded quality in the minds of the customers
 Recognizing employee as a valuable resources and making
a team works among them
 By facilitating modernized core banking system that make
the customers to be satisfied by the service of the
organization
 Mobilization of deposits
 Provision of credit services
 International banking services
 Money transfer services
 Safe deposit service

1.5. Strength, Weakness, opportunity and Treat (SWOT)

Analysis of the Organization
1.5.1. Strength

13
Strength is resources, skill and other advantages relative to other
compotators and the need of market a firm service, so this branch of
Cooperative Bank of Oromia has the following strength:-
 Good coordination and communication with in the staff
members
 Employees training and education service
 Number of branches in the country
 Employees, integrity, punctuality and good relationship
with customers
 Continues profitability of the Bank in Subsequent years

Weakness
Even if the Bank, specifically Adama Branch has the above mentioned
strength, it has its own problems this are:-
 Application of new Technology this are:-
 Lack of online local money transfer service
 Lack of automatic teller machine (ATM) in all
bullying branches
 Lack of updated software’s to process transaction
 Lack of competitive file stratagem system
 Insufficient employee’s experience and education level
 The speed flexibility of customer service
 Not enough equipment and other instrument and lack of
maintenance and report service
1.5.2. Opportunities
 Infrastructures: Road, electricity, Telephone, Internet,
service etc.
 Economic and population growth of the country
 Government economic policies, which is supportive to
private sector

13
  Proximity to the capital city. Addis Ababa, which the
countries finical center.
 Location of the branch is also near to the market area of
Adama Town.
 Investment activity of the town and surrounding area.
1.5.3. Treats
 Increasing number of competitors
 Regulation and restriction of national Bank
 Saving or deposit or culture of the people
 net work problem of the country
 Inflation
 Shortage of skilled experienced man power
1.6. Problem Observed
 Currently Cooperative Bank of Oromia Adama Branch faces
different problems, the major problems I observed when I was
doing my professional practice are the following:-
 Insufficient number of employees, currently the branch
has,28 clerical staff members, but this number of
employees is not matched with the number of customers
currently served in the branch
 The Bank is not operating with the current banking
Technology compared with other Bank in the Town.
Because of this problem the Bank currently is not possible
to give speedy and fixable service to customers, the
branches also faces problem of skilled and experienced
manpower also have effect on the quality and speed of
service.

In addition to the above problems, the branch has some equipments

and instruments that have not fully operated, because they have defect
on it and the functioned equipments are enough, the other critical

13
problem is the fluctuation of electric power and the quality telephone.
In general the combination of the entire above problem may decrease
the banks profitability and image, in order to solve this problem the
following points are corrective measures.

1.7. Possible Solutions

The possible solution I suggested for above problems is the following:-

 The branch/Bank should hire new experienced employees and,

up grade the skill of employee’s that are currently work in the
branch
 The bank should use core Banking system and install automatic
Teller machine (ATM) on the branch
 The bank should also be apply online local money transfer service
rather it uses Telegram Transfer
 In order to use it’s resource and equipment in branch efficiently
the branch should repair and maintain the instruments and
equipment continuously and as it necessary replace it with the
new one

PART TWO

2. Activity Report

13
2.1. Activities and major responsibilities in the Branch

Cooperative Bank of Oromia of Adama Branch has not its own

departments rather. It performs operation by direction of departments
at head office level, but in order to facilitate its operation the branch
has its own division. This division performs different kinds of activities
and responsibilities duties and responsibilities of clerks among of this
division I take the customer service office. Customer service office is one
of the independent divisions in Cooperative Bank of Oromia of Adama
branch that plays a great contribution for the achievement of the bank.
At the time of CBO Adama branch established customer service office
perform different activities. Thus are:

 Answers enquires from customer: explains banking services

available
 Assist prospective customer in completing various forms for
opening new bank accounts or closing existing ones.
 Processes the issuance of new pas books and cheek book obtain
specimen signature and photo of customers for signature cards
and pass book
 Registers and delivers saving and cheek books to customers
 Keeps custody of specimen signature cords initials deposit and
withdrawal vouchers to verify accuracy of signature
 Closes accounts upon request of customers: marks date of
accounts closure on the register book withdrawal specimen
signature cords and their respective ledgers, if it exist
 Assist in the calculation of interest payment and saving
accounts
 Identifies payees before processing payment
 Assist in handling stop payment order and blocking of accounts

13
2.2. Activities I Assigned to do
 Identifies payees before processing payment, this is the process of
writing payees address and other information from his/her
identification cards, driving licenses, passport etc on the back of
money received Ticket, Blocking outward ticket and the back of
cheek etc in order to secure payment of cash.
 Assisting prospective customer in completing various forms for
opening new bank accounts or closing existing one
 Assisting illiterate customer in filling different kinds of forms this
are
 Deposit slip
 Withdrawal ticket
 Local money transfer form
 Processing the issuance of new passbook and checkbooks
obtaining specimen signature and photo of customer for
signature cards and pass books
 Collecting and preparing different ticket for Journal keepers and
pc operators

2.3. Problem Encountered and Remedial Measures I have

taken

When I have done this activity, I encountered with different problems

some this problems and remedial measure I have taken are the
following

 Willingness of employee’s to give information but, this problem

gradually solved by increasing relationship with all employee’s
and by asking questions when they are not busy

13
  Spelling errors and neatness of hand writing of problems. This
problems are not continues and solved with in short time by
taking different corrective measures
 Supervisor related problems, for example my supervise forced me
to activities that have no relation with practical attachments, and
not allowed me to communicate with other employees, finally this
problem solved by asking discussing with my supervise politely.
2.4. Problem of Division and Suggest Solutions
2.4.1. Problem of Division

Customer communication and discipline of clerks because of this

problem customer upset and sometimes makes conflict with the clerks
and disturb the banks operation this in long ran erase the Banks image

 In sufficient and inexperienced clerks.

 The instrument and equipment that the clerks uses are not well
functions and not enough in order to give complete flexible service
 Working environment of the clerks also not comfortable
2.4.2. Suggested Solutions
 In order to improve employee’s/ clerks discipline and politeness,
the manager should be supervise their activity closely and must
take corrective measures.
 The branch should also be increase the number of clerks, give the
necessary training education
 The instrument’s equipments that have needed repair and
maintenance should be repaired or replaced with new equipments
 The branch should be made the working environment of clerks
more attractive and computable.

PART THREE

3. Attachment Evaluation
13
 3.1. Rationales and Significances of Practical
Attachment

The practical attachments that have given for department of business

administration student’s have different reasons and objective these
are:-

 To expose students to actual working environment instead of only

engaged in to theoretical aspect of their courses
 To create an environment, which provide opportunities to students
that can help them relate theories which they learnt from classes
with what is going on in organization where they supposed to join
for work
 The purpose of the practical attachment also to assist students to
acquire skills need to become practical oriented professional and
to student’s to easily adopt the real work environment when they
joint it also helps students to grasp and understand the theory
with little effort and improve their analytical abilities, in addition
the above benefits it minimizes training costs incurred by
employer’s as they attempt to familiarize with working
environment.

3.2. Relevance of Organization and Applicability of

Theories

Cooperative bank of Oromia Adama Branch is relevant for my practical

attachment, because the Bank have its own customer service and
different process.

3.3. Problems and Solutions of Practical Attachment

13
  Difficulty to get enough information that is essential to write
the practical attachment report, but I tried to get information
from other sources like websites, pamphlets etc.
 Financial problems, this problem mainly related with
transportation printing, internet costs etc and solved with my
family assistance/support
 Shortage of time especially to write practical Attachment
report and this also solve by using break and night time
efficiently and effectively

PART FOUR
4. Conclusion and Recommendation
4.1. Conclusion

To sum up, the practical attachment I have done for 20 day in

Cooperative Bank of Oromia Adama branch. The branch was
established with its own objectives, mission, visions, and also have its

13
own values, strength weaknesses, opportunities and treats. The branch
has not its own department rather perform operation by order of
departments in head of office level and the branch currently provide
different services with insufficient number of employment equipment
and instruments and this problem reduce the quality of service, in
order to solve this problem the branch should increase the quality and
quantity of equipment and man power

To facilitate operation the branch has division and this divisions have
their own responsibilities and duties, from this duties and
responsibilities my participation mainly related with clerks. Activities
but in doing this activities I encountered with, supervisor and personal
related problems but, this problem solved by increasing my relationship
with all employee’s in the branch

In general Cooperative Bank of Oromia Adama Branch I relevant to my

field of study because, the branch has customer service related with
business administration, and this practical attachment support
students to expose them to actual working environment instead of only
engaged in to theoretical aspect of their courses.

4.2. Recommendation

Before finishing this practical attachment report I, would like to forward

ideas that, I believe to be important for the branches successful
operation.

 The branch should increase the number of employee’s and hire

experienced employee’s
13
  The bank should also began online local money transfer and core
banking system in all outlying branches
 In order to compute effectively with other banks in the country,
the bank should install ATM (Automatic Teller machine) in all
branches
 Equipments and instruments in the branch should be repaired
and replaced with new equipments and buy additional
instruments
 To solve electric energy problem in the branch the branch should
buy its own Generator.

Table of Contents
Contents Page
Abstract---------------------------------------------------------------------------i
Acknowledgment----------------------------------------------------------------ii
Part One
1. Organizational Report -----------------------------------------------------------1
1.1. Background of the Organization----------------------------------1
1.2. Cardinal issues (Mission, Vision, Values and objectives)-----2
1.3. Organizational Structures-----------------------------------------3
1.4. The extent to which the organization realizing its vision --- -4
1.5. Strength, Weakness, Opportunity and Treat (SWOT)
Analysis of the Organization--------------------------------------4
1.5.1. Strength ------------------------------------------------4
1.5.2. Opportunities-------------------------------------------5
1.5.3. Treats ---------------------------------------------------6
1.6. Problem Observed --------------------------------------------------6
1.7. Possible Solutions --------------------------------------------------7

13
 Part Two
2. Activity Report -------------------------------------------------------------------8
2.1. Activities and major responsibilities in the branch------------8
2.2. Activities I Assigned to do -----------------------------------------9
2.3. Problem Encountered and Remedial Measures
I have taken----------------------------------------------------------9
2.4. Problem of Division and Suggest Solutions--------------------10
2.4.1. Problem of Division -----------------------------------10
2.4.2. Suggested Solutions-----------------------------------10
Part Three
3. Attachment Evaluation---------------------------------------------------------11
3.1. Rationales and Significances of Practical Attachment-------11
3.2. Relevance of Organization and Applicability of Theories-----12
3.3. Problems and Solutions of Practical Attachment--------13
Part Four
4. Conclusion and Recommendation--------------------------------------------13
4.1. Conclusion-----------------------------------------------------------13
4.2. Recommendation---------------------------------------------------14

Abstract

The report is about the practical attachment in Cooperative Bank of

Oromia Adama Branch in particular. The report mainly explore the
branches strengths, weakness opportunities and treats having in mind
its objectives, mission, vision and values the report also explore
problem encountered in the process of performing different activities
and it’s possible solutions are identified/forwarded

In general the report has four main parts: part one organization Report,
part two, Activity report, part three, attachment evaluation and part
four, recommendation and conclusion and this practical attachment

13
enables students to apply knowledge learning in class in real working
environment.

ii

Acknowledgment

I would like to thanks Cooperative Bank of Oromia Adama Branch and

all staff member specially My supervisor for giving chance to perform
my practical attachment and necessary information and I would like to
thanks SOB department of Business Administration.

13
 i

13