Assessment of Transport service delivery (in case

of Adama Transport Authority)

A Senior Research Project Paper Submitted to Departement of Logistics and

Supply Chain Management of Adama Science and Technology University as the
Requirements for the Fulfillment of B.A Degree in Logistics and Supply Chain
Management

Prepared by: EYOB HAYLYE ID NO R/4016/05

Advisor: BOGALE ALEMU (PhD)

ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY

SCHOOL OF BUSINESS AND ECONOMICS

DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT

JUNE, 2015
 ADAMA, ETHIOPIA

Acknowledgments
First and most great thanks given to Almighty of God. He has helped me in every aspect of
my life. I am highly indebted to my respected advisor Mr. Bogale Alemu who tirelessly
checked, commented and directed my research work and finally made fruitful.

I would like to thank Adama transport agency department staffs, without their help this
paper would not be materialized.

I also greatly owe a favor to my beloved family for their continuous affection and support
to my education life.
 Contents
Acknowledgments......................................................................................................................................... II

List of tables .................................................................................................................................................. V

Abstract ........................................................................................................................................................ VI

1. INTRODUCTION ...........................................................................................................................................

1. Back ground of the study ....................................................................................................................

1.2. Statement of the Problem ..............................................................................................................

1.3. Objective of the study .....................................................................................................................

1.3.1. General objective ....................................................................................................................

1.3.2. Specific objective ....................................................................................................................

1.4. Scope of the study ..........................................................................................................................

1.5. Limitation ........................................................................................................................................

1.6. Significance of the study .................................................................................................................

2.1. Basic Concepts for Transportation and Service ..............................................................................

2.1.1. Definition of Transport............................................................................................................

2.1.2. Role of Transportation ............................................................................................................

2.1.3. Basic Modes of Transport .......................................................................................................

2.1.4. Transportation management ..................................................................................................

2.2. Definition of service ........................................................................................................................

2.2.1. Logistics customer service ......................................................................................................

2.2.2. Economic Evaluation of Services.............................................................................................

2.2.3. Service delivery and customer satisfaction ............................................................................

2.2.4. Service performance ...............................................................................................................

2.2.5. The role of Employees in service delivery...............................................................................

2.2.6. The role of Customers in Service delivery...............................................................................

2.3. Service Delivery Process..................................................................................................................

 2.3.1. Available for service ................................................................................................................

2.3.2. Journeyman.............................................................................................................................

2.3.4. World class service delivery ....................................................................................................

3. Research design and Methodology.........................................................................................................

3.1. Research design ..............................................................................................................................

3.2. Sample size technique and sampling method .......................................................................... XXII

3.3. Nature and source of data ..............................................................................................................

3.4. Data gathering instruments ............................................................................................................

3.5. Data gathering procedure ...............................................................................................................

3.6. Method of Data Analysis ...............................................................................................................

4. DATA PRESENTATION AND ANALYSIS .....................................................................................................

4.1. Demographic characteristics of the respondent ............................................................................

4.2. Analysis for customer questioner ............................................................................................ XXXII

4.3. Analysis of Interview Questions .....................................................................................................

5. SUMMARY, CONCLUSION AND RECOMMENDATION .............................................................................

5.1. SUMMARY OF MAJOR FINDINGS ....................................................................................................

5.2. Conclusion .......................................................................................................................................

5.3. Recommendation ................................................................................................................... XXXIX

Reference ....................................................................................................................................................
 List of tables
Table 3-1: Sample Size Determination. ................................................................................................... XXIII
Table 4-1: Demographic characteristics of the Respondents ...................................................................XXVI
Table 4-2: Employees integration ..........................................................................................................XXVII
Table 4-3: complaint solving ..................................................................................................................XXVII
Table 4-4: Customer satisfaction ...........................................................................................................XXVIII
Table 4-5: Evaluation .............................................................................................................................XXVIII
Table 4-6: Implementing training ............................................................................................................ XXIX
Table 4-7: Technological use ................................................................................................................... XXIX
Table 4-8: Respects for customer............................................................................................................. XXX
Table 4-9: Manager’s support ................................................................................................................... XXX
Table 4-10: Team work ............................................................................................................................ XXXI
Table 4-11: Fighting law breakers ........................................................................................................... XXXI
Table 4-12: Evaluate service coverage ................................................................................................... XXXII
Table 4-13: Satisfaction from service delivery ...................................................................................... XXXIII
Table 4-14: Evaluate the quality of service ...........................................................................................XXXIV
Table 4-15: Mode choosing ...................................................................................................................XXXIV
Table 4-16: Solving complaints ..............................................................................................................XXXV
Abstract
A study in titled transportation service delivery in the case of Adama transport authority. The
study was conducted with the objective and importance of delivering effective transportation
service to increase customer satisfaction and also have the importance of helping the researcher
to improve his practical knowledge and familiarize with the real world. The data was collected
through primary and secondary data collection method and the collected data was analyzed by
using descriptive method. Using the sample and results of data analysis conclusion was made.
Finally the researcher came to an end by recommending important issue to modify the
transporting service delivery of the company.
 CHAPTER ONE

1. INTRODUCTION

1. Back ground of the study

Transportation is one of the most visible elements of logistics operation. As consumers, we
are accustomed to seeing tracks and trains transporting product or parked at business facilities.
Transportation is one of the largest logistics cost and may account for a significant portion of the
selling price of some products (Donald 1996).

Transportation may be defined as movement of materials and goods, or people from one place to
another with a specific objective. Transportation is fundamental to civilization. The role of
transportation in socio economic development is that it allows for; division of labor and labor
specialization procurements of row materials from various sources, dispatch of good to market
place, personal mobility etc. moreover, transportation cannot be stored or transfer and hence each
jury is unique in time and place. From the above mentioned definition, transportation some is
divide in to the movement of materials and good (fright) and movement of people (passenger)
(Dr. Ayele kuris, 2006).

The role of transportation in logistics operations has changed dramatically over the last three
decades. Prior to transportation deregulation, the purchase of transportation could he likes to
buying a commodity such as coal or grain. There was very little difference between
transportation suppliers in terms of product, service, or price. Transportation deregulation in
1980 introduced pricing flexibility and significantly increased the range of services
transportation companies could provide customers. Today a wide range of transportation
alternatives are available to support product or raw material logistics. For example, logistics
managers may integrate private with for-hire transportation to reduce total logistics costs. Many
for-hire carriers offer a wide variety of value-added services such as product rotation,
sequencing, and customized freight delivery and presentation. Technology has enhanced real
time visibility of where freight is throughout the supply chain and when it will be delivered.
Precise product delivery reduces inventory, storage, and materials handling. As such, the value
of transportation has become greater than simply moving product from one location to another.
(Donald J. Bowersox) Service is any act or performance that one part can offer action of
anything. Its production many or may not be tie to physical product (Philip kotler, 2006).

The establishment of Adama transportation goes back to the period of emperor Haileslasse
regime. During derg regime it shows some progress and expansion and changed to Adama
transportation authority. The organization is located Adama city around Menharya. It has
currently 115 emoloyees under different divisions.

1.2. Statement of the Problem

Road traffic accidents are among the most damaging environmental impacts which have results
from transportation development. Roads safety therefore is worldwide problem each year more
than half a million people die in traffic accidents and many more are injured. In this respects
more vehicles are usually involved. In developing countries next to the death caused by natural
factors is road traffic accident and this has a great impact on the socio-economic activity (B,
Balaji, 2002).

Now day’s transportation systems are becoming modern and highly complicated. This
complication is in line with their care in number of city’s population to performance of transport
sector and in fighting law breakers in the transportation industry by traffic management system
of the transportation industry to reduce the number of death due to reckless drives. Though there
are officials and committees to fight, there are limitless obstacles that hinder Adama
transportation Authority. This paper attempted to address the following care.

1. Does Adama transportation authority provide integrated transportation services?

2. What is the service scope of Adama transportation authority?
3. How the organization occurs on keeping up with the modernization technology?
 1.3. Objective of the study

1.3.1. General objective

The general objective of this study was to assess transportation service delivery in Adama town
transportation authority.

1.3.2. Specific objective

The specific objectives of this study were to address the following issue.

1. To identify the integration of Adama transportation authority to give service that

covers all citizens of Adama city.
2. To identify the service scope of the authority.
3. To assess the uses of modernization technologies in the authority.

1.4. Scope of the study

There are significant numbers of transportation areas in Ethiopia but this study focused only on
Adama transportation authority and theoretically the study was limited in the area of passenger
transport because data availability and research manageability.

1.5. Limitation
The limitation of this study includes the following:

 Day to day appointment of the employee.

 Absence of sufficient data and document.
 Resistance of the employees to provide information.

 Some of the respondents were not give response sincerely.

 Questionnaire method is primary used to gather primary data. However, the
information may not free from personal bias of respondent.

1.6. Significance of the study

This study will benefit different groups of people i.e. organization, policy makers and individuals

 It helps the organization to identify their weakness and strengths in order to improve
transportation service delivery system and also to make corrective measures.
 Policy makers will be benefited from this finding by getting genuine information while
they are preparing rules and guidelines.
 It can serve as a base for future investigation for other researchers who are interested in
studying this title.
 CHAPTER TWO
2. LITERATURE REVIEW

2.1. Basic Concepts for Transportation and Service

2.1.1. Definition of Transport

Transportation defined as the activity that facilitates physical movement of goods as well as
individual from one place to another.

Transportation is an important supply chain driver because products are rarely produced and
consumed in the same location. The importance of transportation has grown with the increasing
globalization in supply chains as well as the growth in e-commerce because both trends increase
the distance products travel. Transportation decisions impact supply chain profitability and
influence both inventory and facility decisions within a supply chain.

Any supply chain's success is closely linked to the appropriate use of transportation.
Transportation refers to the movement of product from one location to another as it makes its
way from the beginning of a supply chain to the consumer. With the rapid growth in
international trade, good multimodal freight transportation systems to move the resulting cargo
have become even more significant. (Chopra, 2007:386)

2.1.2. Role of Transportation

Transportation is a very visible element of logistics. Consumers are accustomed to seeing trucks
and trains transporting product or parked at business facilities. Few consumers fully understand
just how dependent our economic system is upon economical and dependable transportation.
Transportation has the following roles:

1. Saves time: arrival of goods and services at right time.

2. Balance regional development: resource allocation and good communication

3. Create employment opportunities.eg, loading and unloading

4. Source of income for individuals and government/tax purpose

5. For success of war: for defended foreign aggression

6. For economic growth: as trade and investment and improved per capital of citizens and etc.
 2.1.3. Basic Modes of Transport
The freight transportation structure consists of the rights-of-way, vehicles, and carriers that
operate within five basic transportation modes. A mode identifies a basic transportation method
or form. The mode of transport describes the type of transport used. There are several options
available now for moving goods and services from one place to another. These modes have
emerged over a period of time representing changes in technology and contemporary business
environment. Science & Technology have played major role in development of these modes and
relevant infrastructure. Mode selection is an important decision in transportation strategy as it
has an impact on cost transportation.

There are basically five different options – rail, road, water, air and pipeline. Each mode has
different characteristics, and the best in any particular circumstances depends on the type of
goods to be moved, locations, distance, value and a whole range of other things. Among those
five modes of transportations the researcher focuses on road transport. Road is the prevalent
mode of transport within cities and, for general goods, between cities. The basic road transport
service comprises loading a number of pallets of mate- rials or products on to a semi-trailer (or
articulated lorry) at a dock at the providing premises. (Ian Sadler, 2007)

2.1.4. Transportation management

Transport management system is a process of identifying, evaluating, treating and controlling
the transportation activity in order to maintain transportation service. Transportation is one of
the most visible elements of logistics operation. As consumers, we are accustomed to seeing
trucks and trains transporting product or parked at a distribution facility. Previously the
transportation service offerings were limited. There was little differentiation among the
suppliers of transportation items of either quality or price. Things have changed since then and
now there is increased pricing freedom and availability of new services and relationships,
which requires today’s logisticians to be more proactive in identifying the most desirable
combination of carrier services and pricing structures to meet the firms objectives. (Alticor,
2005:240)
2.2. Definition of service
A service is an act or performance offered by one party to another also the process may be tied to
a physical product. The performance is essentially intangible and does not normally in owner
ship of any factor of production. Service are economic activities that create value and provide
benefit for the customer specific time and place as a result of bringing about desire – or on behalf
of – the recipient of the service. Service are those separated identifiable essentially intangible
activities which provide want- satisfaction and that are not essentially tied to the sale of a product
or another service .To produce a service may or may require the use of tangible good. However
when such use is required there is no transfer of title and permanent owner ship to these tangible
good (Dr. B, Balaji, 2002)

Within supply chain marketing, logistics customer service is the process of providing goods,
information and services to customers in a way that both creates customer satisfaction and is
cost-effective to the supplier. Readers must be careful to distinguish between this logistics
customer service and sales service, which they receive whenever they go into a supermarket.
Sales service consists of attending to the customer’s every need in the local situation, such as the
store, answering questions and helping the customer to ‘feel good’ about the purchase. Logistics
service is primarily about providing and delivering products and services to the consumer. (Ian
Sadler, 2007)

2.2.1. Logistics customer service

Service, which refers to all the functions of provision where there is no physical part or product
involved. Logistics customer service refers specifically to the service parameters of product
delivery and to concomitant services, such as warranty and after-sales service. Many services are
necessary to purchase materials, produce goods and dispatch them. Consider the training of
operators, maintenance of machines, quality advice, cleaning services and technical services
provided by engineers or scientists. These are examples of less visible functions, just as
important to the provision of the finished goods as the physical components. (Ian Sadler, 2007)
 2.2.2. Economic Evaluation of Services
In the early 1900.s only 30 percent of worker is advance countries engage in the service sectors.
By1950 employment in the service accounts for 50 percent of the work force. Today over
whelming developing countries are still in primary stage of development. These economic are
based on extraction natural resources from the land. Their production is low and income is
subject to fluctuation based on the price of commodities such as sugar and copper. In much of
Africa and part of Asia more than 70% of the labor force is engaged in extraction activities
(James A. Fitzsimmons 2011). Service economy can refer to one or two recent economic
development. There are increases of service importance in industrialization economies and fewer
manufactures than in previous decades. The service economy in developing countries is mostly
concentrated in financial service. (www.wekipedia.com) Service to includes all economic
activities whose output is not a physical products or construction is generally consumes at the
time it is products and provides added value in from such a convenience amusement time lines
comfort or health that are essentially intangible concerns of its first purchase ( ALonwilsn2008)
Transportation service is achieved by combining nodes prior to deregulation government policy
limited carriers to operating in a single muse such restrictive ownership sought to promote
Competition between modes on limit the potential for monopoly practices following deregulation
carriers were free to developing integrates models service in affect to more efficient and
effectives meet the need of customer. The following section reviews the current ranges of
services offer by different carriers (Donald BOWER sox 2010). A well managed system of
transportation act as a catalyst of economic transformation with the passage of time the
sophistication in the modes process is a natural phenomenon in India or else where the greatest
revolution in road transport took place with the advance of mechanized road vehicle of late we
find transport the factor barometer of social-economic and commercial progress. It has been
successful in transforming the entire world in to one unit. It has substantially contributor to the
evolution of civilization by transmitting ideas invention and feed back to the globe it has proved
to be un indispensable part of culture and hall mark of civilization (S.M.Jha, 2011). Service is
any act or performance that one part can offer action of anything. Its production many or may not
be tie to physical product (Philip kotler, 2006).
 2.2.3. Service delivery and customer satisfaction
Increased input should lead to improve service delivery and enhance access to surplice ensuring
reliability and accesses to health services is one of the main function of health system. Such
service should meet a minimum quality standard. Different term such as access utilization
availability and coverage are often used inter changeability to reflect on whether people are
receiving the service they needs.

 Access is abroad term with different dimension. Comprehensive measurement of access

requires a systemic assessment of physical, financial and social, psychological access to
service.
 Availability refers to the physical accessibility of service that meets a minimum standard.
The latte often requires specifically in terms of the element service deliver. Such as
basic equipment drugs and commodities health work force presence and training and
guidelines for treatment. This can only be obtained by facility visits using standardizes
data collection instruments. Data on the population distribution are required to estimate
physical access. More précis estimates of physical access uses travel wme and cost rather
than distance but are difficult to measure.
 Affordability refers to the ability of the client to par for the service data can be collected
by facility resets by house interview the latter is likely to be a more accurate reflection of
what the consumer pays. The extent to which the service is affordable depends on the
client ability to par which complicates measurement.
 Acceptability of the service predominantly has asocial psychological dimension which
can best be measurer through house you servers client exist interest are based simple as
those who stay away from the facility because of socio-cultural barriers will be missed
those dimensions of access are a pro condition for quality (Andaleeb,1998)
 2.2.4. Service performance
The service performance is the discrepancy between customers driven service standard and acute
service delivery when guidelines exist for performing service well and treating currently highly
quality service performance is not a certainly all the ways in which companies ensure that
service are preformed according to customer defined design and standard we focus on the key
rune that employers play in service delivery and strategies that ensure they are effectively in their
roles issues of particular concern include completes who feel in conflict between customers and
company management the wrong inadequate technology in appropriate compensation and
recognition and lack of empowerment and teamwork. The variability caused by customer if
customers do not perform appropriately if they do not follow instructions if they disturb other
customer resaving service at the same time service quality is jeopardy effective service
organization acknowledge the role of customer variability and develop strategies to teach
customers to perform their roles appropriately. Although some service campaniles have control
over the delivery channel many service companies depends on other organization to provide
service to the end. Customers for these reasons firms must develops wits to either control or
motivate these intermediates to meet company goals & deliver consistent quality service the
need to synchrony demand and capacity in service organizations in order to deliver consists high
quality service. Service organization often focuses nations if over or under demined because they
lock inventories to smooth demand marketing strategies for managing demand such as price
changes advertising promotion and alternative service offer can help this change service
recovery management which involves understanding why customers complain what they expect
when they complain and how to do with service failures firms engaged in service recovery must
along with other approaches create a complaint handing procedure empower employees to react
in real time to fix failures and guarantee service.( Alan Wilson, 2008)
 2.2.5. The role of Employees in service delivery
Noted service export Leonard Berry has documented that investment in employee success are
key derivers of surround business success. A Computer programs tide room reservation at major
hotel for a discounted price on arrival he discovered that all rooms were filled. The front desk
clerk responded by sending rim to competing hotel and picking up his bill which was more than
twice what he originally pail. The clear also paid for the guest’s taxi to the new hotel and threw
in free fetal at the hares as well. These stones illustrate the important roles played by service
employers in creating satisfied customers and building customer relationship. The front line
service providers in each example are enormously important to the success of the organization
they represent. They are responsible for understanding customer’s needs and for interpreting
customer’s requirement in real time. Leonard Berry has documented that in case after case
companies that represent sustained service success all recognized the critical importance of their
employees. We focus on service employees & harm resource practices that facilitate delivery of
quality service. These discontinues are leveled gap3 the service performance gap in the service
quality frame work. Because employees frequently deliver or preformed the service human
resource issues are a major causes of this gape by focusing on the critical role of service
employees & by developing strategies that which lead to effective customers oriented service
organization can begin to close service delivery gap. The failure to deliver service as destined &
specified can result from a number of employee and human performance factors. Ineffective
recruitment of service oriented employee’s role conflict among contact employees poor
employees technology. Job fit inappropriate evolution compensation system of& lack of
empowerment perceived control team work (Alan Wilson, 2008).

2.2.5.1. The critical importance of service employees

An often room questions about service organization goes like in service organization in you not
service the customer you better go serving someone who is people front line employees and
these supporting them from burins the scenes-are critical to the success of any service
organization. The importance of people in the service market mix which we described in all the
human actors who pay a part in service delivery and thus influence the buyers perception (Alan
Wilson, 2008)
 2.2.6. The role of Customers in Service delivery
Service customer are often present the place that the service is produced and or consumed
interacting with employs and with other customer for example in a grass room or training
situation student the customer student as these consumed and create the educational service.
Because they are present during service production customers can contribute to their ouch
satisfaction in a manufacturing context really dose the production facility contend with customer
presences on the factory floor nor does it rely on the customer immediate real time in put to
manufacture the product as our opening vignette illustrates service customer can actually
produce the service themselves and to some extent are responsible for their own satisfaction
buying furniture customers create value for themselves and in the process also reduce the prices
they pas for printing service. Because customers are participants in service production and
delivers they can potentially contribute to the widening of ap3. That is customers themselves can
influence whether the delivery service meets customer defined specification. Particularly if the
customer is confronting a service concept for the first time customer resisting for the first time
need a data but simple instruction to help them understand how to use the service effectively and
get the greatest value. (Wilson, (2008).) At other times customers may understand their roles but
be unwilling unable to perform for some reason. In a health club context members may
understand that to get in to good physical shape they must follow the work out guidelines set up
by the trainers. If work schedules or illness keep members from living up to their part of the
guidelines, the services will not be successful because of customer induction. In a different
service, customers may choose not to perform the roles defended for them because they are not
rewarded in only war for contributing their effort. When service customers are entitled through
price reduction, Greater convenience or some other tangible benefits are more likely to perform
their roles willing as in the case of opening vignette about. (Wilson, (2008).)

2.2.6.1. Customers as Productive Resources

Service customers have been referred to as partial employees of the organization human
resources who contribute to the organizations productive capacity. Some management express
suggested that the organization’s boundaries be expanded to consider the customer as part of the
service system. In other words if customer contribute effort time or other resources to the service
production process, they should be considered as part of the organization. (Wilson, (2008).)
Customer in puts can affect the organization’s productivity through both the quality of what they
contribute and the resulting quality and quality of output generated. In a business –to business
service context the contribution of the client can enhance the overall productivity of the firm in
both quality and quality of service. (Wilson, (2008).)

2.2.6.2. Customers as Contributors to Service quality & Satisfaction

Another role customer can play in service delivery is that of contributor to deliver own
satisfaction and the ultimate quality of the services their receive customers may care little that
they more increased the productivity of the organization through their participation. But the
likely care a great deal about whether their needs are fulfilled. Effective customer participation
can increases the likelihood that needs are met and that the benefits the customer seeks are
actually duty attained. Think about services such as health care education, Personal fitness and
weight loss, in which the service outcome is highly dependent on customer participation. In these
services, unless the customers perform their roles effectively, the desired service outcomes are
not possible. Alan Wilson (2008).

2.3. Service Delivery Process

The operation of a service firm are the heart of product through the last two decades the
distribution center of L.L been was require stop for complies engaging in bench marking
expresses. Many companies including Nike Disney, Gillette Chrysler, came to see how bean
could fill orders so effectively in fact the centum they visited is no more it has been resting by a
completely new approach. The new approach was driven by every increasing volume of order un
increasing global reach and a growing variety of customized products the old system would build
order from the telephone operation and then issue then every 12 hours to picker. The pickers
would assemble the orders from around the center athen deliver them to packers. Who prepared
the order for shipment? Without successful operation the firm is out of business because it will
haw neutering to offers to the customer however firms setting out construct service operation can
choose from large range of operational options strategically the service firm can choose to use its
operation as the key component of its competitive strategy. The manner in which operation
competitiveness is embraced by various service firms can be described by four stages.
(Fitzsimmery, (2011).)
 2.3.1. Available for service
Operations for affirm with this level of competitiveness are views as necessary oval operation are
at best reactive to the need of the rest the organization and deliver the service as specified. As it
mission the operation department attempts primarily to avoid mistakes. Back office support is
minimized as it investment in training for front line personal –management designs skill out of
the work do not by these personal and pay them the minimum wage whenever possible
(Fitzsimmery, (2011).)

2.3.2. Journeyman
This level of competitive is often provides by the arrival of competitions. It is no longer enough
just to have an operation that works. The firm must now seek feedback from its customers on the
relative cost and perceives qualities of the service at this point the operation department became
much more out warded looking and often becomes interested in bench marking.
Technology for firm at this stage tends to be justified bases on the cost savings possible. The
back office is now seen un contribute to the service but tend to be treats as internal service
function in management of front line employs the emphasis employs are often given process to
follow and management consists of ensuring that procures are followed (Fitzsimmery, (2011).)
2.3.3. Distraction Competence Actives
By this stage operation have reached appoint where they continually etc reinforces by the
personal management function and system that support the customer focus. By this time the firm
has master the core service and instructors the complexity of changing such operation. The back
office is new seen as source volume as the front of house personnel. Technology is no longer
seen as source of cost diameter alone but also as away enhancing the service to customer,
Perhaps in the work force and in the nature of front line management. Frontline workers are
allows to select from alternative productive and not tied down in same way. The roll of front line
management is to listen to consumer and become coaches to the front line work. (Fitzsimmery,
(2011).)
 2.3.4. World class service delivery
To sustain this level of performances uncertain not only have to antiquary excellent but become
fast learn innovators. The back office once seen as a sewn class citizen now must be proactive
developers own capacity and general apportions. Technology is such as away break the
preparation to do things competitor cannot do. The work form is self must be source of
innovators not just operation to achieve this front line supervisor must go beyond coaching to As
mentors they need to be accountable for the presumed development of the work form so that
employees can develop the skills necessary for them to innovate for the firm. (Fitzsimmery,
(2011).)
 CHAPTER THREE

3. Research design and Methodology

3.1. Research design

In this research the researcher applied descriptive research method to describe and address the
related transportation service delivery systems in Adama transportation authority.

3.2. Sample size technique and sampling method

The target population of this study had been Employee of Adama transport authority. The total
population of the case company is 115 in number. The researcher was focus on 20 employees as
sample using non probability sampling technique. Furthermore, the exact sample units of
respondents were considered from company’s management and employees on the basis of
judgmental/non-probability sampling technique. Purposive sampling technique was used to
interview managers who are directly related with the topic under investigation. The researcher
preferred convenience sampling to contact the customers who are located at long distance with
infrequent visit to the case company, this is due to its difficulty to address the whole customers
and not exactly known lists of customers’ with in the case company. Therefore, these
respondents had been addressed as per their arrival or availability at the case company. Thus, to
determine the sample size the researcher preferred to use a method developed by Carvalho
(1984), as cited in (Malhorta, 2007)
Table 3-1: Sample Size Determination.

Population Size Sample size

Low Medium High
51-90 5 13 20
91-150 8 20 32
151-280 13 32 50
281-500 20 50 80
501-1200 32 80 125
1201-3200 50 125 200
3021-10,000 80 200 315
10,001-35000 125 315 500
35001-150000 200 500 800

(Source: Malhorta Naresh, Marketing Research: an applied approach, (Malhorta, 2007))

The total numbers of Adama transportation authority is 115 employees. Therefore, 20 were
considered as a sample respondents as per the Malhora Naresh’s sample determination method,
considering the heterogeneity of sample respondents on the basis of position within the
organization. In addition to this an interview was held with management bodies of the company.
Due to absence of up to date complete customers list at the case company, the researcher used a
sample size of 50 customers as a sample unit by taking into consideration the time and its
manageability.

3.3. Nature and source of data

The researcher used both primary and secondary sources of data. The primary source of data
gathered using through questionnaire and interviews. First questionnaire has prepared and
distribute to employees of the organization staff. Interviews also made to the manager of Adama
transportation authority.
3.4. Data gathering instruments
For the research of this title the researcher gathered data by using questioners (close ended) to
manager and department employee’s this all are best data collection method because the research
need to get right information.

3.5. Data gathering procedure

The principal procedures to be undertaken by the researcher in this study are point out as
follows;

 development of statement of the problem

 formulate appropriate questionnaire
 distribution of the questionnaire for the subject
 data collection and organization
 Analyze and interpretation of data after data collection and organization.

3.6. Method of Data Analysis

To analyze the collected data of the study, both quantitative and qualitative data analysis were
made. Data which are collected through questionnaire were analyzed using quantitatively like
percentage. Data which are collected through interview was analyzed qualitatively.
 CHAPTER FOUR

4. DATA PRESENTATION AND ANALYSIS

This chapter deals with analysis and interpretation of data based on the methodology stated
above. Data is collected some selected customer and employees of Adama transportation
authority. As indicated in the methodology part of chapter three data were collected through
questionnaire from 20 employees of Adama transportation authority and 50 customers of the
organization. Interview was taken from manager of the Adama transportation authority.

4.1. Demographic characteristics of the respondent

Description of the characteristics of target population gives some basic information about the
sample population involved in the study. Thus the table below contains the demographic
characteristics of the respondents.
Table 4-1: Demographic characteristics of the Respondents

Item Background 0ption Number of Percentage

Respondents
1 Sex Male 16 80%
Female 4 20%
Total 20 100%
2 Age 18-25 7 35%
26-35 9 45%
26-50 4 20%
>50 - -
Total 20 100%
3 Educational 12th Complete 8 40%
background Certificate 5 25%
Diploma 5 25%
Degree 2 10%
Total 20 100%
From the above table 4.1(item 1) shown that 16 (80%) of the respondents are male and 4(20%)
of the respondents are females. This shows that majority of the employee respondents are males.
Based on the above table (item 2) shown that 35% of the respondents are found in the age of 18-
25, 9 (45%) of the respondents are found in the age of 26-35, 4(20%) of respondents are found in
the age of 35-50.Therefore, the researcher can concludes that majority of the respondents are lays
between 18-35 age group that is 80%. The information on table 4.1 (item 3) show that 40% of
respondent are 12th complete, 25% of the respondents are certificate, 25% of the respondents are
diploma and the remaining 10% of the respondents are degree holders. This shows that majority
of the respondents are categorized under 12 complete. So researcher observes there is lack of
professional skilled man power.
Table 4-2: Employees integration

Q.1. to what extent employees are integrated to deliver quality service?

Responses Number of Percent (%)

respondent
Very high 9 45
High 11 55
Low - -
Very low - -
Total 20 100

As data shown in the above table 4.2, 11(55%) of respondents replied that there is high
integration among employees of the organization and 9(45%) respondents responded that there is
very high integration. From this the researcher concludes that employees are highly integrated
each other in delivering quality service for customers.
Table 4-3: complaint solving

Q2. To what extent Adama transportation authority is volunteer to hear customer complains?

Response Number of respondents Percent (%)

Very high 12 60
High 7 35
low 1 5
Very low - -
Total 20 100

The above table shows that, 12(60%) of the respondent said that the organization’s commitment
to hear customers complains is very high, and 7(35%) of the respondents responded that the
authority is highly committed to hear customers’ complains and The remaining 5% said that the
way of solving customers’ problem is low. Therefore the researcher can conclude that the
authority’s’ commitment to hear customer complains is very high.

Table 4-4: Customer satisfaction

Q3. Does Adama transportation authority focus on customer satisfaction while delivering the
service?

Response Number of respondents Percent (%)

Yes 18 90
No 2 10
Total 20 100

To survive in the market satisfying customer expectation is crucial thing. According to the above
table 18(90%) of the respondents in sighted that Adama transportation authority focused on
customer satisfaction while delivering service and 2(10%) of respondents responded that the
authority is not focused on customer satisfaction while delivering service. Therefore it is
possible to conclude that the transportation authority’s service delivering system is customer
oriented.
Table 4-5: Evaluation

Q4. How do you evaluate the service delivery time expectation?

Response Number of respondents Percent (%)

Very high 5 25
High 6 30
Medium 9 45
Low - -
Total 20 100

As it is seen from the table 9(45%) of the employees responded that there is fair time
expectation, 6 (30%) of employees responded high time expectation is there while the remaining
5(25%) of employees replied that there is very high time expectation. Generally there the service
delivery system in terms of time expectation is fair.
Table 4-6: Implementing training

Q5. Does your organization implement training for the employees on customer service?
Response Number of response Percent (%)
yes 17 85
No 3 15
Total 20 100

The tables indicate that most the of respondents 17(85%) responded that the organization
provides training for its employees for the purpose of improving the service quality and 3(15%)
responded that the authority does not provide trainings that aimed in improving customer service.
So that it is possible to say that the authority provides training for the employees to enhance their
ability and improve the service delivery.
Table 4-7: Technological use

Q6. To what extent the authority’s operation is supported by IT(information technology)?

Automation and computerization are very important to assist service workers in their job
machines provides more consistent quality than human reducing the level off variability
respondent were asked about the organization focus on keeping up with technology advance
Reponses are summarized in table below.
Response Number of response Percent (%)
Low 1 5
Medium 8 40
Enough 10 50
High 1 5
Total 20 100

From the above table it is observed that the highest number of respondents 10(50%) replied that
the authority uses IT to support its operation, 8(40%) of the employees responded there is
medium usage of IT in the organization, while one respondent 1(5%) responded that there is high
application of IT and the remaining one respondent 1(5%) replies that there is low application of
IT in the organization’s operation. The above information leads to make a conclusion that is the
existence of enough IT application in the authority’s operation
Table 4-8: Respects for customer

Q7. What is the degree of respect to your customers?

Response Number of response Percent (%)

Bad - -
Medium 4 20
Good 16 80
Total 20 100

As the above table shows 16(80%) of the employees responded that the degree of respect is good
and 4(20%) of employees responded that there is medium respect for their customers. this show
that employees are performing their job enthusiastically.
Table 4-9: Manager’s support

Q8. To what extent the top managers support employees?

Good relationship between supervisor and subordinated is necessarily condition to enhance

employees satisfaction in delivering service. As well as the support of top managers are better to
their employee
Response Number of response Percent (%)
Very good 13 65
Good 7 35
Poor - -
Very poor - -
Total 20 100

As show on the above table 13(65%) of respondent said there is manager support guidance in the
organization. And 7(35%) of the respondent responded that there is good support from the top
management. finally the researcher observe the existence of very good management support in
Adama transport authority.
Table 4-10: Team work

Q9. What does the team work looks like in your organization?

Response Number of response Percent (%)

Low 1 5
Medium 12 60
High 7 35
Total 20 100

Form the respondent point of view 12 (60%) of employees responded that there is fair team work
and 7(35%), 1(5%) employees said high and low team work culture are built up with each
employees respectively. The researcher concludes that Adama transportation service build a fair
team work facilities the gullibility of service.

Table 4-11: Fighting law breakers

Q10. To what degree Adama transportation authority is fighting law breakers?

Response Number of response Percent (%)

Low 2 10
High 10 50
Medium 8 40
Total 20 100

From the respondent point of view 10(50%) said that there is high degree of fighting law
breakers, 8(40%) of respondent said that there is fair fighting of law breakers and 2(10%)
respondents replied that the authority’s fighting of law breakers is low. therefore, the researcher
concluded that Adama transportation authority in fighting law breakers has high degree.

4.2. Analysis for customer questioner

The researcher summarized customer response on the table blow.

Table 4-12: Evaluate service coverage

Q11. How do you evaluate transportation service coverage in Adama City?

Response Number of respondents Percent (%)
Excellent - -
Very good 10 20
Good 14 28
Poor 26 52
Total 50 100

As it is seen from the customer point views 26(52%) of the customer responded poor. the other
14(28%) of customer responses good the other 10(20%) of customer responded that very good
transportation coverage exist in the city. in general there is poor transportation service coverage
in the city so the passengers cannot be well served.
Table 4-13: Satisfaction from service delivery

Q12.To what extent you satisfied from the service delivery

Response Number of respondents Percent (%)

Delighted - -
Very satisfied 9 18
Satisfied 13 26
Unsatisfied 28 56
Total 50 100
As it can be seen from customer point of view in the above table 28 (56%) of customers
responded that they are unsatisfied to the service delivery of the authority, 13(26%) of customer
responded that they are satisfied to the service delivery of the authority and the remaining
9(18%) respondent replied that he/she is highly satisfied. therefore; the researcher concluded that
the customers are unsatisfied to the service delivery of the authority, which indicates that the
authority does not provide the service as per the customer expectation.
Table 4-14: Evaluate the quality of service

Q13. How do you evaluate the transportation service quality of the authority?

Response Number of respondents Percent (%)

Good 2 4
Medium 23 46
Poor 25 50
Total 50 100

The above table information shows 25(50%) of customer responded that the transportation
service quality is poor, 23 (46%) of customer replied that there is fair transportation service
quality and the remaining one respondent 2(4%) of the customers agree that the transportation
service quality is good. Therefore the researcher concludes that the quality of transportation
service is poor.
Table 4-15: Mode choosing

Q14. What do you take in to account while choosing type of vehicle?

Response Number of response Percent (%)

Availability 23 46

Safety 8 16

Cost 19 38

Total 50 100

Before choosing mode of transport in case of passenger transport there is different considerations
to be taken to in account. The above table indicates 23(46%) of customer responded that
availability is to be taken in to account, 8(16%) of the respondents said that safety is their option
of choosing the type of vehicle and the remaining 19(38%) said cost is the main consideration.
Therefore; this implies that the customers choose the type of the vehicle they use in the basis of
their availability.
Table 4-16: Solving complains

Q15: to what extent Adama transportation authority is committed to solve your complains?
Response Number of respondents Percent (%)
Excellent - -
Very good 7 14
Good 17 34
Poor 26 52
Total 100

According to table 4.16 26(52%) of the respondents are replied that there is poor commitment to
sole complain, 17(34%) of respondents are replied that good commitment and the remains
7(14%) of the respondents are replied that the authority has very good commitment to sole the
customers complain and there is no respondent replied excellent. According to the above
information we can conclude that the authority is poor to sole the customers complain.
4.3. Analysis of Interview Questions
The interview was made for manager of Adama transportation authority in order to support the
response of employees and customers.
Question -1: Do you initiate your employees to work hard in delivering the service to the
customer?
The manager suggested that he initiates his employees by providing what is expected from the
organization like allowances payment on holidays, over time payment and promotion. In addition
to the managers responded that all of these rewards are given only if they perform the task
assigned to them properly. This implies that the manager motivate only those employees who
perform their task properly.
Question-2: How do you see the speed of the service delivery of Adama transportation
authority?
The manager told that the organization is doing its effort to deliver its service on time and
employees are given the instruction on how to facilitate the delivery of service.
Question -3: Is there any barrier of communication between managers and employees which
affects the quality service delivery in the organization?
The manger suggest that the manager communicate employees when there is problems which is
not solved by employees themselves and again the manger communicate or contact employees
for tasks to be done. And also understand and solve complains which are raised by employees
and customers as well.
Question – 4: How do you see the transportation coverage in Adama transportation authority?
The manager replied that now the coverage of transportation in the authority is around 53%
cover and in the future they working hardly to address the coverage to 100%.
 CHAPTER FIVE

5. SUMMARY, CONCLUSION AND RECOMMENDATION

This Chapter deals with summary, conclusion and recommendation based on the analysis and
interpretations made in chapter four. The researcher also tried to make recommendations for the
raised problems.

5.1. SUMMARY OF MAJOR FINDINGS

The purpose of this research was to assess transportation service delivery in case of Adama
transport authority. Therefore, according to the discussion and analysis of data presented under
chapter four, the following findings were drawn:-
 In the organization employees are integrated to deliver satisfactory transportation service.
 There is high commitment in the organization to satisfy the customers and hear
customers’ complains and hence there is high degree of customer respect.
 The authority provides training for the employees to enhance their ability and improve
the service delivery.
 There is high level of top level managers’ support with coordination of employees.
 The team work which implement in the organization is medium, but the organization has
to implement collaboration at all in the organization.
 According to the customers response there is poor transportation coverage and service
quality in the city and therefore almost majority of the customers are unsatisfied with the
service delivery of the authority.
5.2. Conclusion
This research is conducted on assessment of transportation service delivery in case of Adama
transportation authority. In particular this research attempted to answer the following three basic
research questions:-
1. Does Adama transportation authority provide integrated transportation services?
2. What is the service scope of Adama transportation authority?
3. How the organization occurs on keeping up with the modernization technology?

Depending on the finding of the study, the following conclusions were made:-

Transportation is the means of conveyance or travel from one place to another. It divided in to
passenger and freight transportation. Passenger transportation includes private transportation
such as automobile or air planes, and public transportation. Passenger transportation is one of the
most important functions for the country because it is more vital economic activities for a
business and it Saves time. For this research, data gathering instruments uses two methods.
These are questionnaire and unstructured interview. From both questionnaire and interview the
respondents agreed in the existence of integrated transportation service in Adama transportation
authority.

Service are economic activities that create value and provide benefit for the customer specific
time and place as a result of bringing about desire or on behalf of the recipient of the service.
The authority provides training for the employees to enhance their ability and improve the scope
of service delivery and focused on customer satisfaction. But as customer responded that they are
unsatisfied to the service delivery of the authority and there is poor transportation coverage in the
city. Service scope of Adama transport authority has been continuing in this direction.

On the current environment or 21st century not technology rather deficiency of finance is the
main problem to perform different activity with respect to modern technology. Automation and
computerization are very important to assist service. Hence, Adama transport authority applies
computerization partially as the respondent replied but it need full implementation

5.3. Recommendation
In view of the conclusion, the following build suggestion and recommendation were made in the
hope that they would minimize the problem identified in the study area.

 It is highly important to implement quality service for the customers to have better
achievement.

 Receiving customer complains is important for further development and better

arrangement of providing solution for the problems that has been raised by the customer.

 Due to the dynamics of the world technology the organization should have to use recently
discovered IT technology to support the authority’s operation system.

 Continuing good management support for the employees is important for the well being
of the organization for better customer service.

 The organization must improve its team work because working as a team can provide
better service for the customer and it will help employees to help each other for better
improvement.

 Breaking laws has its own negative impact on the development of the organization so it
must continue to restrict the law breaking situation or fight on a higher level.

 In order to have more sufficient service coverage in Adama town the organization must
purchase new vehicles or cars to have sufficient transportation coverage.
  In order to satisfy customers the organization must provide these facility
 Delivering very good service
 Hiring tolerant and ethical employees
 Purchase vehicles which are comfortable for custom
 By using appraisal method the organization must remove obstacles or barriers of quality
service and improve or restore the good one.
 Solving complains from the customer is important for the organization. Because as we
know that “customers are kings” organization should have to solve customer complaints
regarding to their service delivery.

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 Appendix I

Questioner
ADAMA SCIENCE AND TECHNOLOGY UNIVERSITY
SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT OF LOGISTICS AND SUPPLY CHAIN
MANAGEMENT
Dear Sir/ Madam

My name is Eyob Haylye, undergraduate student at Adama Science and Technology University,
School of Business and Economics, Department of Logistics and Supply Chain Management. I
am currently doing a research work on the “Assessment of Transportation Service Delivery” as
a partial fulfilment for the requirement of BA degree in Logistics and Suppl y Chain
Management. The objective of this questionnaire is to collect relevant data pertaining to
transportation service delivery. Hence, the researcher kindly requests you to genuinely respond
to the questions knowing that your responses will be used only for academic research purpose
and remain confidential.
I hope that the research work will help your organization in handling the constraints of the
customers very efficiently and effectively.
Thank you very much in advance indeed for your co-operation!
INSTRUCTION
 No need to write your name
 Write tick ( ) on the box that for closed ended questions
 Write on the space provided for open ended question
Part I: Personal Background
1 Education level: 12th complete Certificate Diploma Degree
Second degree and above

2. Sex: Female Male

3. Experience: 1-5years 5-10years above 10years

4. Employment condition: Contract permanent temporary

5. Age 20-25 26-35 35-50 Above 50

Appendix II: main research questions

Questionnaire for company employees
1. To what extent employees are integrated to deliver quality service?
A. Very high C. Low

B. High D. very low

2. To what extent Adama transportation authority is volunteer to hear customer complains

regarding to the service delivery?
A. Low C. High

B. Medium D. very high

3. Does Adama transportation authority focuses on customer satisfaction while delivering the
service?

A. Yes B. No

4. How do you evaluate the service delivery time expectations?

A. Very high C. medium

B. high D. low

5. Does your organization implement training for the employees on customer service?

A. Yes B. No

6. To what extent the authority’s operation is supported by IT (information technology)?

A. Low C. High

B. Medium D. Enough

7. What is the degree of respects for your customer?

A. bad C. Good

B. medium D. Very good

8. To what extent the top managers support employees?

A. Very Poor C. Good

B. Poor D. Very good

9. What does the team work look like in your organization?

A. high C. low

B. medium

10. To what degree the Adama transportation authority is fighting law breakers?
A. Low C. High B. Medium
Appendix III: Questionnaire for customer of the
company
11. How do you evaluate the transportation service quality of the authority?

A. Very Poor C. Good

B. Poor D. Very good

12. To what extent you satisfied from the delivery of service?

A. Very Poor C. Good

B. Poor D. Very good

13. How do you evaluate transportation service coverage in Adama city?

A. Very poor C. Good

B. Poor D. Very good

14. What do you take in to account mostly while choosing mode of your transportation
service?

Cost safety availability

If any (specify)…………………………………………………………………

15. To what extent Adama transport authority committed to solve your complains?

A. Very poor C. Good

B. Poor D. Very good

 Appendix IV list of interview questions
1. Do you initiate your employees to work hard in delivering the service to the customer?
2. How do you see the speed of the service delivery of Adama transportation authority?
3. Is there any barrier of communication between managers and employees which affects
the quality service delivery in the organization?
4. How do you see the transportation coverage in Adama transportation authority?