DILLA UNIVERSITY

COLLEGE OF BUSSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

INTERNSHIP EXPERIENCE REPORT

HOSTING COMPANY: OROMIA COOPERATIVE BANK
DILLA BRANCH
DURATION TIME: FOR 1 MONTH

NAME ID NO
Lemlem Tesema 034/21

DILLA ETHIOPIA

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 DECLARATION

I declare that this internship entitled, internship experience in case of Cooperative Bank
of Ethiopia yirgacheffe branch is my own effort and study. I have carried out this practice for
five week. This document has not been submitted for award of any degree program in this or any
other institution and that all sources of material are duly acknowledged. It is offered here in
partial fulfillment of the requirement for internship in Management.

I hereby declare that this is my original work made personally and with my brain during

internship.

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ACKNOWLEDGEMENT

First of all, my deepest thanks goes to the Almighty God for his endless help and make me to stayin life
to this day and enables me to complete my internship. I also would like to express My deepest gratitude
goes to Mr. Desalegn nenko (branch manager) of the CBO bank in yigaceffe branch for his endless
support from the preparation until the final discussion of this internship with frequent follow up my
activities and guide me and also I would like to express my thank my advisor Ms yoadan (operational
manager)

Next my special thanks to my advisor Ms.Bemnet Shiferaw for her valuable support and contribution
throughout the development of this attachment.

.I am greatly thanks for my family they had been assisted my schooling life and to give advice how can I
goes with my planning activity up to now my academic schooling in this university. Finally, I would like to
acknowledge all individual and institutions that have helped me materially and morally during the
preparation of this paper. 3

Executive summary/Abstract

This report is an outcome of the Internship, which was conducted during my

stay at Oromia cooperative bank yirgacheffe branch. This was an opportunity

for me to put in practice the theoretical knowledge I had acquired during my

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study. The Internship also gave a real opportunity to gain valuable

experience to fill the gap between study and the beginning of working lives.

Moreover, the practical exposure offered an experiential learning component

that can strengthen previous theoretical knowledge and also motivated me

in perusing with management. Additionally, our experimental learning has

proven to be helpful to develop mine detail skills about banking system, cash

deposits, cash withdraws, mobile banking system, credit products and also

Internet banking In this internship report, it is outlined the practical

experience obtained while working with a team of professionals which

revealed the strength and weakness one had and helped to eradicate the

weakness. I believe I have developed three areas of expertise such as:-

professional skills, communication skills( human skill) and managerial skills.

The report is presented into four chapter as required first chapter state and

describe organization profile, the next one contains activity report and works

that I have attained will presented, the third chapter is the evaluation of the

internship program. Lastly conclusion and recommendation is stated.

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 Table of Contents
CHAPTER ONE:.............................................................................................................................................1
ORGANIZATIONAL REPORT..........................................................................................................................1
1. INTRODUCTION...................................................................................................................................1

1.1 Historical Back Ground Of Cooperative Bank Of Oromia...................................................................2

1.2 Cardinal issues (mission, vision and objective)................................................................................2

1.2.1. Vision:.....................................................................................................................................2

1.2.2. Mission:.....................................................................................................................................2

1.2.3. Objectives.................................................................................................................................3

1.3. The structures of cooperative bank of oromia.................................................................................3

1.4 The extent to which the organization is realizing its vision, mission and performance of the
organization.............................................................................................................................................4

1.5) SWOT ANALYSIS OF THE ORGANIZATION.........................................................................................4

1.1.3 1.5.1) Strength:...................................................................................................................4

1.1.4 1.5.2) weakness:.................................................................................................................4

1.1.5 1.5.4) Treats:........................................................................................................................5

CHAPTER TWO.............................................................................................................................................6
Activity Report.............................................................................................................................................6
2.1 Background of Foreign Transaction...................................................................................................6

2.2 Objectives and responsibilities as well as activities of Foreign Transaction.......................................6

1.1.6 2.2.1 Objectives...................................................................................................................6

1.1.7 2.2.2Responsibility...............................................................................................................7

1.1.8 2.2.3 Activities of foreign transaction..................................................................................7

2.3 Activities and Major Responsibilities of Me as a member department.............................................7

2.4 Performance Evaluation of My Activities...........................................................................................8

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 2.5 Problems encountered on the job and remedial measures...............................................................8

1.1.9 Remedial solution I have taken............................................................................................8

2.6 Problems of division or department and suggested solutions...........................................................8

CHAPTER THREE..........................................................................................................................................9
3. Attachment Evaluation............................................................................................................................9
3.1 Rationales of Practical Attachment....................................................................................................9

3.2 Significance of Practical Attachment..................................................................................................9

3.3 Relevance of organization with my study..........................................................................................9

3.4 Applicability of the theories and others in real world or practical work..........................................10

3.5 Major problems faced me during the attachment...........................................................................10

3.6. Suggested solution and way forward for summer attachment.......................................................10

CHAPTER FOUR..........................................................................................................................................11
4. Summary, conclusions and recommendation........................................................................................11
4. 1. Summary........................................................................................................................................11

4. 2. Conclusions...................................................................................................................................11

4.3 Recommendations...........................................................................................................................11

References.................................................................................................................................................12

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 CHAPTER ONE:

ORGANIZATIONAL REPORT
1. INTRODUCTION
The bank industry is an enormously important part of any economy. Economic growth
depends on the money supply that is delivered by the financial industry and its key
participants. Finance is vital for running, mobilizing and operating the economy of the
nation within which most other social and economic activities take place. It is by far the
most important way in which societies create new value. It provides a society with
delivery mechanisms for many aspects of its needs such as economic, public sector
reform. The industry’s services are essential to mankind’s economic and social day-to-
day existence.
With many other banks such as private and governmental banks cooperative bank of
oromia intertwined with the works being undertaken as financial sector which many of
society’s economic progress is based on

For having Sufficient amount of capital cash is the most important source of every aspect
of investment. To improve the performance of the business as well as to introduce new
business opportunity in the organization cash is very important. Since cash is the most
powerful working capital component, the collection and payment of cash must be studied
carefully. Therefore, this report tries to show how cash is controlled and managed by
taking cooperative Bank of oromia S.C as a representative from the real world practice
CBO is a service and product giving organization. Its main activities are commercial
banking activities encourage mobilization of savings and encourage international banking
activities which are import and export and provide loans and advances to the economic
sectors. CBO operate and manages its cash in many ways. CBO collects cash from its
customers in many ways and documents used for collection and also sources for cash are
discussed.

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1.1 Historical Back Ground Of Cooperative Bank Of Oromia
Cooperative bank of oromia established to provide banking service and product. It was
registered on 29 October 2004 in accordance with article 304 the commercial code of
Ethiopia and was licensed by national bank of Ethiopia as proclaim nation 84/1994 that
provide for licensed and business. The banking commercial on 8th march 2005.
CBO(COOP) in networking its seven branches in A.A and other town in oromia
regional state. The bank which is opened its doors in March 2005 which a paid –up 110
million capital birr in embarked on the networking project a month earlier floating a
tender which award to protect soft solution an Indian company for 964000 birr.
CBO(COOP) Dilla branch which I was conducted is also one branch that is involving so
many activities for so many customers especially for Dilla community , all customers
and cooperative bank of oromia or the others banks. CBO at Dilla branch has, 12 workers
among them, 9 males and 3 females.

Generally, among from the government and private institution I conducted my summer
attachment on CBO(COOP) at Dilla branch:

1.2 Cardinal issues (mission, vision and objective)

1.2.1. Vision:
 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.

1.2.2. Mission:
 We root Our foundation in communities to Provide Banking Solution
that create greater customer experience with emphasis to cooperatives and
Agro-Based Businesses through proper use of Human resource and up-to-
date technologies to maximize stakeholders’ value.

1.2.3. Values:
 Integrity
 Customer Satisfaction
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  Learning Organization
 Team Work
 Cost consciousness
 Concern for community

1.2.4 Objectives
 Protect the interest of the bank against any harmful cause, internal and external.
 Protect the employees against unfair exploitation of labor and improper utilization
of effort and skills.
 Support the members during the time of financial distress and unlawful eviction or
dismissal from job.
 Promote the meet customer satisfaction via employee’s satisfaction.
 Raise awareness on right and duties of employees in line with existing national
laws, international labor conventions and human resource principles.
 Promote to establish and enhance network communication with local and
international unions and federations.
 Create and promote partnership linkage with similar unions operating in the
banking and insurance industry and others.

1.3. The structures of cooperative bank of oromia

i. 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.
ii. General assembly: The general assembly elected representatives, the boards of
directors to whom all the powers to run the bank are based upon.
iii. Board of directors: Boards of directors hired the general managers of the bank.
iv. Executive managers. They are who interested to perform the function relating to
policy matters, implementation and supervision.
v. Functional departments: at head office levels and branches are in charges of the
implementation of policy and strategies of the bank.

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1.4 The extent to which the organization is realizing its vision, mission and performance of
the organization
To realize the vision, mission and objective of the organization all departments should
have to obey their responsibility which given to them identically. They should have to
take care on the activity given to them. All employers should have to be honesty to join
their mission and objectives. The department controllers as well as manager have to be
control the daily activities of every worker
continuously. Additionally the
organization should have to be;

 Deliver of efficient service as per

the standard set.
 Efficient and accurate handling of operational duties.
 Proper utilization of resources
 Proper customer handling
 Timely reporting to the concerned organ
 Appropriate utilization of human resource and material resources and the like
are those realize the vision, mission and objective of the organization.

1.5) SWOT ANALYSIS OF THE ORGANIZATION

1.5.1) Strength:
Good initiation to organize
Fast services for transferring money
Good customer service
Availability of necessary resource

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1.5.2) weakness:

Some the weaknesses are as follows:

Poor management
Lack integrity
Poor market area selection
Poor network utilization insufficient working area for
1.5.3) The best opportunities are as follows
Low house expense at out lay branch
Availability of customer at out lay branch
Experienced employees available
There a willingness customers to use the bank if they are aware
enough
Their business sector is expanding with many future
opportunities for success
Local government wants to encourage local business
Their competitors may be slow the adopt new technologies
Communicate and follows former foreign customers
Communicate by phone others by collecting information from
the foreign customer

1.5.4) Treats:
The following are the serious treats under considerations

High competition among other banks

Lack awareness of customer to use bank service
Lack of access to get new customer at rural area
Global financial crises
Poor saving culture of the societies
Development in technology may change this market beyond
their ability to adopt

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 Small change in the focus of a large competitor might wipe out
any market position they achieve.

CHAPTER TWO

Activity Report
2.1 Background of Foreign Transaction
Foreign transaction is one of the departments of the organization in CBO(COOP)
at Dilla branch. This transaction is always worked only on foreign remittance
transaction. Related to this department there are money sender institution in the
world which used to money transaction from country to country. Western Union,
Money Gram, XpressMoney, Atlantic International (Bole) and Dihabshil are some
of these agents.

These institutions are different from banks, that banks transfer money only in
domestic country. But these institution transfer money everywhere from country to
country in the world. These institutions convert all currencies to USD and send to
the beneficiaries or receivers in the country. So this department receive those
money from these institution after converted to USD and serve the customer in
domestic currency (birr).

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2.2 Objectives and responsibilities as well as activities of Foreign Transaction

2.2.1 Objectives
Foreign transaction is as one of the department of the organization to win their vision and
to be the good competitor with others it has objectives. Also to serve the customers on
time as their need to make CBO(COOP) to be the world class as general and the most
service giver particularly in the country or particular place.

2.2.2Responsibility
This department also has the responsibility to fulfill the role given to it as branch. Some
of the responsibilities are; Serve customer due respect of law and the love sprit of
customer, respect and present on time of work and report all files as time listed are some
of the responsibilities of the department.

2.2.3 Activities of foreign transaction

o Serve customer in money received as remittance by converting to birr
o Make withdrawal and deposit for customer
o Check the name, signature and date of the customer
o Report a daily recorded and weekly
o Check the ID card of customer to be renewed before serving them
o Buy some counties foreign currency

2.3 Activities and Major Responsibilities of Me as a member department

Since I am one of the members of the department of foreign transaction and department
of the customer service office I have the responsibility to obey and daily activities in the
organization. To serve the customer I have to present within the working time and do the
role given to me. To avoid mistakes in the process I have to work properly and contribute
to be valuable works to the organization.

I provide product/services information, answer questions, and resolve any enmerging

problems that customer accounts might face with accuracy and efficiency. The best
customer service offices are genuinely excited to help customers.

I have the responsibility to answer customer questions quickly and effectively, resolve
issues with empathy and care, improve brand credibility, and nurture relationships.
Support teams can measure objectives with key metrics such as: Average first response
time. Average resolution time.

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 There are also activities those always I work in the department. Some of my activities
are;

 New acount opening

 E-birr and mobile banking opening
 Introducing the company product& service like credit facility Michu and
so on.
 When buying foreign currency check to be normal
 Treating customers with good approach
 Carrying out tasks assigned by the manager in the office, such as copying
receipts, mailing, correcting documents, etc.
 Helping customers by filling the withdrawal and deposit on the form.
 Check the name, date and signature of the customer to be filled properly
 Check the exchange rate daily
 Check the arrival of security number of beneficiary from sender
 Record the daily changed exchange rate

2.4 Performance Evaluation of My Activities

From the first day that I have started practical work on foreign transaction department;

I could understand how transaction is made

I could understand the difference between domestic and foreign transaction
As one employer I can serve the customers related with the division foreign
transaction
I have good communication with others at work place
To ask necessary data I could communicate with my manager from time to
time etc.

2.5 Problems encountered on the job and remedial measures

There are some problems which affect me on my activities of 30 days. Some of these
problems are from the organization and some are from customers.

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 are careless to respect the employees and rule
Some of them bring incorrect account which the system is not read

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Remedial solution I have taken
 By using the user of my friend I have done my activities with my friend
 I worked my works more time by standing for the lack of seat
 I have told to branch manager these problems to be minimized
 Through customer I have told to them to fill criteria properly
 I have told to branch manager to find solution how customers fill all criteria

2.6 Problems of division or department and suggested solutions

In case of division in the organization there are no many problems on the different
division. Since all departments work their role differentially this division minimizes the
problem. Also the division of works controlled by another department and if there is a
mistake the correct the problem together. Not only that all department takes the risk of
the problem occurred by their activities they work properly. But in some department to
work efficiently and effectively in the organization there are some employer who are not
trained well those hinder the bank to give efficient service to the customers.

Some of the suggested solution as branch are giving well training for employer before
starting job, since all employers work on all department by shift the company must teach
the them on all department to work well and examine the employer from time to time as
well as control employer not only with the system also physically.

CHAPTER THREE

3. Attachment Evaluation
3.1 Rationales of Practical Attachment
Rationales of the practical attachment are the practical reason to decide how to act
on the attachments some of the following listed is reason of practical attachment

It is for the case that the apprentice to realize the theory in class to real world
through practice.
It is for that the apprentice should compare and contrast the economic thought with
practical work
It is that how the problem is identified and the solution is found
It is for that the apprentice to make strong the relation he/she has with others on
work etc.

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3.2 Significance of Practical Attachment
Since this practical attachment is the connection between theory in class and real world it
has significant. Some of the significance of this practical attachment;

_ Help to know and compare the relationship between the theory and real
world
_ To increase the confidence of students on future work
_ To identify the problem in the company for necessary solution
_ Help to apply the theory in class for future expected activities
_ Help for students how to identify and find solution for problem
_ Help to teach others the acceptability of theory in class
_ Increase confidence of student for research and etc.…

3.3 Relevance of organization with my study

From starting date of my practical attachment as the general with the branch and
particularly with the department there is good connection with my study in foreign
remittance transaction. Theoretically since I have studied about foreign transaction in
class and in my practical study how to make transaction of that remittance this
organization is relevant with my practical study. In other way as general as organization
there is also good connection with my study that for that foreign transaction is the
department of the organization and my study is related with it that has relation with
International trade department again the organization and my study has good connection.

3.4 Applicability of the theories and others in real world or practical work
In my practical study in CBO(COOP) in Dilla branch there are many points that I
have learned in class and the same with my work in practical study.

In OB(Organizational Behavior) What I have learned is the culture of the

organization, dress code, punctuality or appointment on time etc. and I have
realized that we have to serve patiently, politely and helpfully as customers
come with different manners.
In Microeconomics the course shows about cost advantage. It says that when
there are many competitors in the market to gain more profit it needs more
cost. In production company to get more profit than the other it needs
additional demand for worker which increases the wage of employer.

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3.5 Major problems faced me during the attachment
_ Lack of the data of the organization as the branch
_ The problems related to this is how to start to write the report whether as
whole or as branch
_ To keep the secret of the organization the manager didn’t give me
response about the problems currently faced the organization
_ The main problems faced me on this practical attachment are the problem
of lack of the seat and user which affect me to not work as expected.

3.6. Suggested solution and way forward for summer attachment

I have got some data about the organization from the employers and from my daily
activities.
By using my friend’s user and seat I have cover the problem and work the work
with them together.

CHAPTER FOUR

4. Summary, conclusions and recommendation

4. 1. Summary
Cooperative bank of oromia established to provide banking service and product. It was
registered on 29 October 2004 in accordance with article 304 the commercial code of
Ethiopia and was licensed by national bank of Ethiopia as proclaim nation 84/1994 that
provide for licensed and business. The banking commercial on 8th march 2005.
Bank service and product are very important for social, economic, and political
development of mankind.

As it is known cash is the most important factors in banking operation it needs detailed
management system. But in host bank the management is poor to achieve the designed
objective.

Mobilization of financial resources in host bank arises from the fact that the amount of
financial resources for the purpose of productive investment is very low.

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The bank has both managerial and organizational problems to provide the required
contribution from it.

4. 2. Conclusions
Cooperative bank of oromia can’t wait to achieve an Integral service and product
Planning; the situation is serious in terms of social and economic profit. The risk is very
high and demands sooner actions. It is necessary to integrate accounting principle
strategies (organizational) with a domestic Service program (small actions).
Implementation of an Integral customer service System will avoid social and economic
risks of every local condition and will minimize the

Quality of service. Traditional bank management strategies, focusing only on routine

services are too simple in today`s bank management practice. This work can help to
resolve the problems not only in CBO(COOP), even in others banks of the area with the
same situation.

4.3 Recommendations

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
 Working with good team spirit

References

The annual report of the company at June 31 of 2016.

The website of the organization; www.combank.et,
http//www.CBO servlet/PROD/Browser Servlet/.
The interview; information from the employers of the organization.
The daily and weekly activities.

APPENDEX

Proposed budget

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Item Quantity Price Total

Typing &printing 40 2 80

Pen 3 25 75

Transportation 32 times 10 320

Miscellaneous expense 300

Total 775

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