DEBRE MARKOS
UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTEMANT OF ECONOMICS
ORGANIZATION: COOPERATIVE BANK OF OROMIA DEBRE MARKOS BRANCH
A Report Submitted in Partial Fulfillment of the Requirement
For the Subject Practical Attachment section-B
Group name ID number
1.Kehulum Yibeltal.................................................1305750
2.Tadele Molla.....................................................1306524
3. Kalkidan Wubetie.................................................1308441
4.Zerihun Girma......................................................1305845
5.Mukerem Sebah..................................................1304377
6.Habtamu Sitotaw ............................................. 1305693
Submitted to wubalem
Submission date 13/10/ 2016
1|Page
DEBRE MARKOF,
ETHIOPIA
2|Page
Table content page
ABSTRACT...........................................................................................................................ii
ACRONOMY..........................................................................................................................ii
Executive summery............................................................................................................iii
1.1 Background of the cooperative bank of Oromia..........................................................1
1.2 Vision of the Organization...........................................................................................2
1.3 Mission of the Organization.........................................................................................3
1.4 Values of the organization .........................................................................................5
1.5 Duties and responsibility of the organization............................................................8
1.5.1 Major Responsibility Of The Department................................................................8
1.5.2 The responsibilities and major activities our as a member of department..........10
1.5.3 The role of each department of cooperative bank of Oromia...............................11
1.5.4 Number of employees and education status of employees within organization..............12
1.6 The structures of cooperative bank of oromia .........................................................15
1.7 major experience obtained from the organization ..................................................16
1.7.1 Lessons , experience and skills..............................................................................16
1.7.2 New skill and knowledge learned during attachment..........................................16
1.8 Major challenge and problems that you will face during the practical attachment............ 17
Conclusion .....................................................................................................................18
Recommendations (suggestion).....................................................................................19
Reference...........................................................................................................................19
i|Page
ABSTRACT
Generally, the objective of this practical attachment is to assess the performance of
cooperative bank of oromia Debre markos branch .CBO is extent to which is
realizing its vision and mission and performance of the organization in relation to
its objectives. The intention of this practical attachment was to increase student’s
knowledge and enable student to compare what have learnt so far in class and
what have experienced in summer practical. To produce well qualified, self-reliant,
active, change agent and real problem solver student. In addition, the other
objective is to investigate equal participation of commercial Bank of Ethiopia with
other bank to it realizes to its visions, mission and objective. Not only limited to
this but also emphasis the problems faced by we while we were performing this
practical attachment. Thus, practical attachment suggests solutions and some of
policy implication toward reducing the problems based on finding.
ii | P a g e
ACRONOMY
ATM....Automatic Teller Machine
CBO…..Cooperative Bank of Oromia
CSO…….Customers Service Office
CRO……Customer’s Relationship Officer
ID.......Identification card
Executive summery
iii | P a g e
This report was prepared on Cooperative Bank of Oromia Debre Markos branch . It
compromise detailed information about Cooperative Bank of Oromia.starting from its
establishment.Cooperative Bank of Oromia in Debremarkos branch was established on
December 10,2011Ec. The organization perform different function through different
department under it.
The main objective of this Internship is to determine how the theoretical courses are
applied on the real world. Besides this, it focuses on identifying and opportunities facing
the department. It was conducted that there is the existence of clear and good
communication channel between head of the office and different functional departments
of the discriminatory treatments, act of relationship between the office and its
stakeholders, many well educated and well experienced staffs are the major strength of
the office. On the other hand, poor documentation, high work burden on all staffs, foliar
of connection, and differential treatment to seat oral offices are some of the weaknesses
of the office during the practice. It is recommended that strong attention is needed to be
given to develop computerized and documentation system, computer and other related
technologies should be available for the staffs. The office should be focus on research
and development activities.
iv | P a g e
v|Page
1.1 Background of the cooperative bank of Oromia
The cooperative bank of Oromia (CBO) was registered commercially on 29 th October,
2004 in accordance with article 304 of commercial code of Ethiopia.it was established in
line with proclamation no 84/1994 with authorized capital of ETB 300 million.it started
operation on 8th march 2005, with paid up share capital of birr 112 million.The service of
banking was started many years ago in Ethiopia. 62.86% of ownership was occupied by
cooperatives while the remaining 37.14% was occupied by non-cooperatives.Bank of
Abyssinia was legally replaced by Bank of Ethiopia shortly after Emperor Haile selassie
came to power in 1931. After the Ethiopia victory over fascist Italy the state bank of
Ethiopia established by proclamation issued in august 1942. In April 1943, state bank of
Ethiopia commenced full operation and acted as the central bank of Ethiopia.
Commercial Bank of Ethiopia was legally established in 1963. After the fall of socialism
the first private bank Awash International Bank, was established in 1994. After 1994
different private Banks were established. Haile Gebre Lube, regarded as the founding
father (proponent) of Ethiopia’s cooperatives, brought the idea of founding the bank for
he believed that the best way to fight poverty is through cooperation. Formally
establishing a project office in 2002, the bank’s formation was realized with majority of
shareholders being the cooperative societies. The bank then is commercially licensed in
October 2004 and commenced operations in March 2005. As there are no legal
provisions that allow establishment of a cooperative bank in the country, the bank was
registered in accordance with article 304 of the commercial code of Ethiopia.
The cooperative bank of Oromia is now one of the most profitable banks in Ethiopia
having a total asset value of more than ETB 139.56 billion. The bank has 750+ branch
networks, more than 13.2 million account holders, and more than 15,481 employees.
1|Page
Debre Markos branch is one of the branches of Cooperative Bank of Oromia. It has been
established in december 2011. It was located in Amhara, East gojjam zone, Debre
Markos town,
1.2 Vision of the Organization
˝To be the leading Private Bank in Ethiopia by 2025 to be dynamic, well equipped,
worldwide known and recognized center of excellence in competence based training,
research and consultancy services in business and related disciplines.”
The organization vision motivation to the employees to work hard, to come arrived on
time, work honesty, accountability, transparency. etc
The employees ambition one of the leading private bank in Ethiopia by 2025 . Because
Cooperative Bank of Oromia to give many service like Mobile banking, internet banking,
ATM service etc
The extent to which the organization is realizing its visions and performance of the
organization in relation to its objectives
It make unique the cooperative Bank of Oromia Debre mrakos branch was well organized
to realize its cardinal issues. It improves banking service from time to time and innovate
new technology to give satisfaction for customer.
Workers of the organization are accountable to their customer and good information for
every sector Cooperative Bank of Oromia Debre markos branch its mission and vision
through giving the above service such as mobile banking, internet banking, and so on.
1.3 Mission of the Organization
2|Page
“We root our foundation in communities to provide banking solution that create greater
customer experience with emphasis to cooperative and agro-based businesses through
proper use of human resources and up-to-date technology to maximize stakeholder
value”.
Cooperative Bank of Oromia: Mission Statement Development
Here's a step-by-step approach to crafting a compelling mission statement for the
Cooperative Bank of Oromia, addressing the five key issues you've outlined:
1. Brainstorming:
• Focus on the Bank's Purpose: What is the fundamental reason for the Cooperative Bank
of Oromia's existence?
* Serving Oromia's Communities: Empowering Oromia's communities through financial
services.
* Supporting Cooperative Businesses: Strengthening cooperatives and agro-based
businesses in Oromia.
* Promoting Economic Growth: Contributing to the economic development of Oromia
through financial inclusion.
* Improving Livelihoods: Helping people in Oromia improve their lives through access
to financial tools and resources.
• Values and Principles: What core values guide the bank's actions? (See Next response
for potential values)
• Target Audience: Who are the bank's primary customers and beneficiaries?
* Cooperatives
* Small and Medium Enterprises (SMEs)
* Individuals in rural and urban Oromia
* Farmers and agricultural businesses
2. Strengths & Weaknesses:
3|Page
• Strengths:
Good initiation to organize
Fast services for transferring money
Good customer service
Availability of necessary resource
• Weaknesses:
Limited resources compared to larger banks
Potential for competition from established banks
Challenges in reaching remote communities with limited infrastructure
Poor market area selection
Poor network utilization insufficient working area for storing money
Shortage of cash
3. Basic Mission Statement:
• Draft: "The Cooperative Bank of Oromia is committed to empowering Oromia's
communities through financial services, supporting cooperative businesses, and
promoting economic development, while upholding integrity and transparency in all our
actions."
4. Polish the Language:
• Verbs: "Empower," "strengthen," "promote," "contribute," "uphold."
• Adjectives: "Sustainable," "innovative," "responsible," "ethical," "inclusive."
• Revise: "The Cooperative Bank of Oromia empowers Oromia's communities by
providing innovative and responsible financial services, strengthening cooperatives and
agro-based businesses, and promoting sustainable economic development, all while
upholding ethical principles and transparency."
5. Competitor and Non-Competitor Inspiration:
• Competitor missionn: Analyze the mission statements of other cooperative banks in
Ethiopia or similar organizations.
4|Page
• Non-Competitor mission: Look at mission statements of organizations that share similar
values, such as:
* Microfinance institutions: Focus on financial inclusion and poverty alleviation.
* Community development organizations: Promote social and economic development in
rural areas.
Final Mission Statement:
• 2-3 Sentences: "The Cooperative Bank of Oromia empowers communities by providing
innovative and responsible financial services, strengthening cooperatives and agro-based
businesses, and promoting sustainable economic development. We are committed to
ethical principles and transparency, ensuring financial inclusion and prosperity for all."
1.4 Values of the organization
Respecting Society participation the financial rule and regulation.
Public trust and confidence.
Transparency
Customer focused.
Believing in team work & appreciating it
Core Values
The following set of values will serve to guide the words and actions of all our
employees;
Integrity
Customer Satisfaction
Learning Organization
Teamwork
5|Page
Cost Consciousness
Concern for Community
Cooperative Bank of Oromia: Organizational Values & Desired Qualities
Here's a breakdown of potential organizational values for the Cooperative Bank of
Oromia, along with desired qualities in employees that align with these values
1. Customer Focus:
* Behavior: Emphasize understanding customer needs, providing personalized service,
and building long-term relationships.
* Mindset: Prioritize customer satisfaction as the driving force behind all operations.
* Qualities: Empathy, communication skills, problem-solving skills, active listening,
patience.
2. Integrity & Transparency:
* Behavior: Act ethically, honestly, and with transparency in all interactions.
* Mindset: Uphold the highest ethical standards and promote accountability within the
organization.
* Qualities: Honesty, trustworthiness, integrity, strong moral compass, willingness to
uphold ethical guidelines.
3. Teamwork & Collaboration:
* Behavior: Promote a collaborative environment where individuals work together
effectively to achieve shared goals.
6|Page
* Mindset: Value diverse perspectives and recognize the strength of a unified team.
* Qualities: Collaboration skills, communication skills, ability to work effectively in
groups, flexibility, willingness to share knowledge and resources.
4. Innovation & Excellence:
* Behavior: Seek continuous improvement, embrace new ideas, and strive for
excellence in all aspects of work.
* Mindset: Be open to new technologies and approaches to enhance efficiency and
customer experience.
* Qualities: Creativity, problem-solving skills, adaptability, a growth mindset,
willingness to learn and develop.
5. Community Engagement:
* Behavior: Actively contribute to the well-being and prosperity of Oromia's
communities.
* Mindset: Understand the needs and challenges of Oromia and seek ways to make a
positive impact.
* Qualities: Social responsibility, empathy, understanding of Oromia's culture and
context, willingness to give back to the community.
Desired Qualities for Team Members:
• Strong Work Ethic: Dedicated, hardworking, and reliable individuals committed to
delivering quality work.
• Positive Attitude: Enthusiastic, optimistic, and supportive team players who contribute
to a positive and productive work environment.
7|Page
• Problem-Solving Skills: Able to think critically, analyze situations, and find creative
solutions to challenges.
• Adaptability: Flexible and willing to adjust to changing circumstances and priorities.
• Communication Skills: Clear, effective communication with both internal teams and
external stakeholders.
• Commitment to Learning: Dedicated to continuous learning and professional
development to stay abreast of industry trends.
Individual Potential for the Greater Good:
• Leadership Potential: Individuals who demonstrate leadership qualities, initiative, and
the ability to inspire others.
• Community Focus: Individuals who are passionate about serving the needs of Oromia's
communities and contributing to their well-being.
• Technological Savvy: Individuals who are comfortable with technology and can
embrace new tools and approaches to enhance efficiency and customer experience.
1.5 Duties and responsibility of the organization
1.5.1 Major Responsibility Of The Department
1) Account opening: - there are many types of accounts those are:-
Saving account – is interest bearing deposit opened by legal and physical persons,
organization and association.
Demand deposit account – shall mean an interest bearing account opened only by
customers who are literate.
8|Page
Special demand account – means a non interest bearing account that is opened to
full fill the request of customer who for one not wants interest for their deposit.
Fixed time deposits – a type of account deposit is received at certain period of time
without movement a minimum of three month and attracts higher interest rate than
others.
Earmarked account – means account opened with other description after the name
of the account holders such as club, business and work shop account.
2) Duties related to customer service;
Opening account.
Pay cash& receive cash.
Some of the activity that we performed with the help of customer service officer and all
staff members. Account opening for new customers. accounts such as
Saving account-, it is an interest bearing deposit within the Cooperative Bank of Oromia
by physical & legal persons (individuals, organizations & associations) who can fulfill
the bank’s requirement. The acceptable minimum balance to open saving account is birr
50
When customers are deposit their cash the bank records the transaction as follows
Cash…………………….xx
Customer account………………xx
(To record cash deposit by the customer)
When the customer withdraws cash from his /her account, the bank records the
transactional as follows
9|Page
Customer account…………xx
Cash………………………………xx
1.5.2 The responsibilities and major activities our as a member of department
As department member we also have the responsibilities of performing the activities of
the department. Based on those general activities, we perform the following specific
activities as an apprentice, when we were participating at Cooperative Bank of Oromia
Debre Markos branch
We opened mobile banking for more than 60 customers by supporting employees.
we check the name, date and signature of the customer to be filled properly.
We participated in different writing and typing activities that help for customer
service.
we accomplish a given work punctual and honestly by obeying the rules and
regulation of the organization.
Protecting the office resource from damage.
We gave different service for department and customers.
We fill different forms by helping customers.
1.5.3 The role of each department of cooperative bank of Oromia
Branch Manager
Operational manager
Branch controller
Cash operations
Customer service office
Branch Manager: receives memo from director-retail and director-private
banking/district directors. He receives the case and sets the limit approved on the system.
As the memo enters in the system, the necessary particulars mentioned in the memo to
10 | P a g e
the appropriate account (interest, expiry date etc.) will be sated. The co-sign on the
prepared ticket and forwards the memo to the branch controller and checks and co-sign
interest and reversal entry tickets at the end of month. At end of the months, he checks
whether OD of credit balance is transferred to the liability account or not.
Operational manager: the role of operational manager are; receives and checks the
correctness of the letter of application submitted; authorizes the transaction within her/his
authorization-limit prints the bankers cheque /CPO/after confirming that the cash has
been received or the appropriate account has been debited and sign on the banker
cheque /CPO/and forwards the same to CSO/maker.
Branch controller: the role of the branch controller receives memo from the branch
manager /manger customer service and checks that the debit/ credit transfer ticket and
interest rate inserted properly and other detail in the memo are properly entered on the
system and forward the memo to customer relationship officer (CRO)/branch manager.
Then he/she checks and balance daily debit and credit on the posting journal with the
daily journal. He/she also Checks the proper payment and completeness of the transaction
and retains the physical document.
Cash operations: the role of cash operations are opens the vault and withdraws there
from the cash that will be needed for the day’s operations jointly with the CSM transfers.
to check the amount of cash withdrawn from vault against the denomination through
vault to till transfer. Distributes adequate physical cash in all kinds of denominations to
the CSO/makers and transfers through the system to the concerned CSO/maker the
required-cash and the petty- cash balance held in each of the CSO cash boxes.
Customer service office; are maker/checker
The roles of CSO maker are; collecting ID if the payee/beneficiary is other account
holder, checking genuineness and completeness of the Cheque identifying/verifying the
customer signature and authorization within discretionary limit and etc.
11 | P a g e
The roles of CSO checker are; checking the correctness and completeness and authorizes
based on the authorization limit assigned for.
1.5.4 Number of employees and education status of employees within organization
The data collected from CBO Bank showed that, out of 8(eight) total employees 1(one)
were female employee and 7 (Seven) of them were males.
Table: Number of employees within an organization
No Role in Organization Number of Employees
Male Female Total
1 Branch Manager 1 - 1
2 Operational Manager 1 - 1
3 Auditor 1 - 1
4 Cashier 1 - 1
5 Customer Service Office 3 1 4
Total 7 1 8
As shown in the above table, the organization has eight employees and each of them have
their role in the organization. The organization has 1 branch manager, 1 operational
manager or vice manager, 1 auditor and 1 cashier. Additionally, the organization has four
customer service officers (including 1 female and 3 male).
Educational Status of Employees
Table: Educational status of the employees in the organization
No Educational Status Number of Employees
Male Female Total
12 | P a g e
1 Level - - -
2 Degree 7 1 8
3 MA or Masters - - -
Total 7 1 8
As illustrated in the above Table, the employees in the organization all of them have the
degree (BA/BS) educational status.
Quality and Quantity of training /practicum/that we receive while on this practice
we have been attending different training for different bank products and services
Just like bank products
Saving Accounts
Youth Accountj
Current Account
Farmer Account
Sinqe (Women Saving) Account
Gamme Account
IFB (Interest free Account)
Description of working hours
From 8:00AM—12:00PM morning working hour
12:00PM—1:00PM lunch time and from 1:00PM—7:00PM working hour
But some employees lunch time may differ from the above time and the bank can’t be
closed so every employee works by shifting each other.
13 | P a g e
1.6 The structures of cooperative bank of oromia
General body. The apex body of cooperative bank of oromia is the general body
of shareholders /owners of the bank who have the basic right to decide the
objective, the existence and operation of the bank.
General assembly: The general assembly elected representatives, the boards of
directors to whom all the powers to run the bank are based upon.
Board of directors: Boards of directors hired the general managers of the bank.
Executive managers. They are who interested to perform the function relating to
policy matters, implementation and supervision.
Functional departments: at head office levels and branches are in charges of
the implementation of policy and strategies of the bank.
When we show the structure graphically;
The
corporate governance reveals on how the Board has functioned and the structures of
14 | P a g e
governance. The Bank functions under a governance framework that enables the Board to
discharge its role of providing oversight and strategic counsel with its responsibility to
ensure the Bank’s compliance with regulatory requirements and acceptable risk. The
Board monitors management’s progress on an ongoing basis.
1.7 major experience obtained from the organization
1.7.1 Lessons , experience and skills
Lesson
We have done several activity during our practical attachment. These are:-
We practiced a planning process starting from the data collection, data analyses, SWOT
analysis, planning stage etc.
We practiced on reporting processed.
Observing the each activities of the organization.
Collecting, gathering and compelling necessary data.
Documenting and recording annual and quarter reports.
Developing profile of non-government organization.
1.7.2 New skill and knowledge learned during attachment
During our attachment we have learned different skills and knowledge.
Skill we have learned
We have learned our Communication skill during our attachment with different
employees of the organization.
We developed co-working skill and team working skill when we gather different data
from the organization.
15 | P a g e
We improved our hearing and writing skill when we collect data about the organization.
we improved our problem solving skill and etc.
Knowledge we have learned
How different project proposals to be analyzed.
How different project reports to be prepared and analyzed
1.8 Major challenge and problems that you will face during the practical attachment
There are some problems which affect we on our activities less than month. Some of
these problems are from the organization and some are from customers. As organization
some the problems are lack of seats, lack of user (access) for we and others are the
problem of light and network those hinder our activities to not serve customer properly.
From customers some customers don’t care about criteria’s to be fulfilled properly rather
than looking only about the service.
- Some of them don’t sign on the ticket and some signature on the ticket and on the book
are different.
- No correct order of sender name which is difficult to serve customer.
- Some of them bring incorrect account which the system is not read.
Conclusion
Organizational background, its mission, vision and values, organizational structure, and
various challenges and problems that affect organization at current time of CBO has
investigated in the attachment.
16 | P a g e
The attachment ascertains that creating strong relation between university and employers
has great advantages for students, university and generally for the society. Many
Ethiopian higher education institutions do not create practical attachment chance for their
students. Rather they focused on teaching theoretical part and that creates challenge for
the students in their employment after they complete academic life.
We observed some issues like the professional status of the staff members, punctuality of
the staff members and gender in the organization. On the other hand many challenges
and problems observed in the organizations where the practical attachment was
conducted and knowing challenges and problems of organizations may develop problem
solving skill of the students. Therefore, conducting practical attachment is important for
students, university, employers and for society generally.
Generally,we gained some experience due to this practical attachment such as how to
work in cooperation with other, etc. The main problem we found, society have low
information about banking system, negative attitude of society toward the term bank and
department. Lack of information and lack of enough time are other problems; however,
we tried to do our best in order to overcome or give related solution to those challenges.
Recommendations (suggestion)
The following are the possible recommendations for the advancement of the bank:
Best management for effective and efficient resource utilization
Selection strategic work place
Sustainable on line connection for money mobilization
Good initiation and capacity building for employees
Service excellence is useful for CBO to compete with private banks. The bank should
expand modern banking service specially E-banking service to its customer;
Working with good team spirit
Additions of employees are good.
As we think some award is important for brilliant employer to motivate all employers.
17 | P a g e
Like other private bank CBO should pay better salary to its employee due to employee
satisfaction is one among the values of the bank, in addition to that better salary may
reduce skilled and experienced employee flow to private bank.
In general It is knows that the organization has many contribution towards the
development of the country but also has weakness. It’s recommended to improve its
weakness and to keep with its strength, capitalize and internalize the external
opportunities in different ways, to improve its management works
REFERENCES
“Cooperative Bank of Oromia” www. Coopbankoromia.com.et
“Coopbank at a Glance”. Cooperative Bank of Oromia.
https://coopbankoromia.com.et.
https://banksethiopia.com/banks/cooperative-bank-of-oromia
The daily and weekly activities
18 | P a g e
