ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

SCHOOL OF COMMERCE

Factors Influencing Effectiveness of Monitoring and

Evaluation System: The Case of Commercial Bank of Ethiopia
Information Technology Projects

A Research Project Submitted to Addis Ababa University,

School of Commerce in Partial Fulfillment of the Award of
Master’s Degree in Project Management

By
Kassahun Abera

Advisor: Adane Atara (Phd)

JUNE 2019
ADDIS ABABA, ETHIOPIA

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 ADDIS ABABA UNIVERSITY
SCHOOL OF COMMERCE
DEPARTMENT OF PROJECT MANAGEMENT

Factors Influencing Effectiveness of Monitoring and Evaluation System: The Case

of Commercial Bank of Ethiopia Information Technology Projects

By: Kassahun Abera

Approval board committee

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Internal Examiner signature
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External Examiner signature
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Research advisor signature

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DECLARATION

I, the undersigned, declare that the study entitled “Factors Influencing Effectiveness of
Monitoring and Evaluation System: the Case of Commercial Bank of Ethiopia
Information Technology Projects” is the result of my own effort and study that all
sources of materials used for the study have been acknowledged. I have conducted the
study independently with the guidance and comments of the research advisor. This study
has not been submitted for any degree in any university. It is conducted for the partial
fulfillment of the Master of Arts Degree in Project Management.

---------------------------- ----------------------------
Kassahun Abera Date

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LETTER OF CERTIFICATION

This is to certify that Kassahun Abera has conducted this project work entitled “Factors
Influencing Effectiveness of Monitoring and Evaluation System: the Case of
Commercial Bank of Ethiopia Information Technology Projects” is under my
supervision. This project work is original and suitable for the submission in partial
fulfillment of the requirement for the award of Master of Arts Degree in Project
Management.

Adane Atara (PhD) __________________________

Date and Signature

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LIST OF ABBREVIATIONS AND ACRONYMS

ATM-Automated Teller Machine

CBE - Commercial Bank of Ethiopia
NBE - National Bank of Ethiopia
M&E- Monitoring and Evaluation
PMI -Project Management Institute
PMBOK- Project Management Body of Knowledge
SPSS- Statistical Package for Social Science
USAID- United States Agency for International Development
UNDP United Nations Development Program Development
WB -World Bank

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 ABSTRACT
This study sought to analyze the factors influencing effectiveness of a monitoring and
evaluation system for Commercial Bank of Ethiopia IT projects. The study adopted a
descriptive research design in solving the research problem. The study targeted 62
employees of Commercial Bank of Ethiopia project office. Due to their small number, a
census was conducted. The response rate was 90%. The study utilized a questionnaire in
collecting primary data. Collected data was edited, sorted, cleaned and coded for data
analysis using SPSS statistical package version 20. The findings were analyzed using
means, standard deviation, percentages and frequencies then presented using tables.
Competence of staff handling monitoring and evaluation, Budget allocation to monitoring
and evaluation, stakeholders participation and organization leadership were found to have
a positive correlation with effectiveness of M&E system with correlation coefficients of
0.842, 0.836, 0.858 and 0.802 respectively. The study suggest this study may be replicated
into other banks to enable generalization to be made with regard to factors influencing
effectiveness of monitoring and evaluation of information technology projects by
commercial banks in Ethiopia.

KEY WORDS: monitoring and evaluation, effectiveness, IT projects

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ACKNOWLEDGMENTS

First and foremost I would like to give my thanks for the almighty GOD and St. VERGIN
MARRY for all things that have been done for me and for being guardians though good
and rough times of my life.

Next my gratitude goes to my advisor Dr. Adane Atara (PhD) for his assistance and
support in the preparation of this study.

It is my pleasure to give my appreciations for all commercial bank of Ethiopia project

office staffs both managers and staff members who helped me without any hesitation while
I was collecting data for the study.

Next, I am grateful for all my friends, classmates and work colleagues for their
understanding and moral support that is what kept me moving forward.

Finally, my deepest gratitude goes to my beloved family, for their unlimited support and
carrying both on my academic and personal life all the way until now specially my father
and mother.

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 Table of Contents
CHAPTER ONE: INTRODUCTION ............................................................................................ 1
1.1 Background of the study .................................................................................................... 1
1.2. Back ground of the company .................................................................................................. 2
1.3. Statement of the Problem ................................................................................................... 3
1.4 Research questions ................................................................................................................... 6
1.5 General objective of the study ............................................................................................ 6
1.5.1 Specific objectives of the study ......................................................................................... 6
1.6 Scope of the Study ............................................................................................................. 6
1.7 Significance of the Study ......................................................................................................... 7
1.8 Limitations of the study ........................................................................................................... 7
1.9 Definition of significant terms ................................................................................................. 8
1.10 Organization of the Study ...................................................................................................... 9
CHAPTER TWO ......................................................................................................................... 10
LITERATURE REVIEW ............................................................................................................ 10
2.1 Introduction............................................................................................................................ 10
2.2 Theoretical Review ................................................................................................................ 10
2.2.1 Rogers Innovation Diffusion Theory............................................................................... 10
2.2.2 Stakeholder Theory ......................................................................................................... 12
2.2.3 Theory of constraints ...................................................................................................... 12
2.2.4 Financial Literacy Theory ............................................................................................... 13
2.2.5 Human Capital Theory .................................................................................................... 14
2.3 Empirical Review .................................................................................................................. 15
2.3.1 Concept of Effectiveness of Monitoring and Evaluation System for Projects ................. 15
2.3.2 Stakeholder’s participation and Effectiveness of a Monitoring and Evaluation .............. 18
2.3.3 Budgetary allocations to M&E and Effectiveness of a Monitoring and Evaluation ........ 19
2.3.4 Organizational Leadership and Effectiveness of a Monitoring and Evaluation ............... 20
2.3.5 Competences of Staff handling Monitoring and Evaluation ............................................ 21
2.4 Chapter Summary .................................................................................................................. 22
CHAPTER THREE ..................................................................................................................... 24
RESEARCH DESIGN & METHODOLOGY ............................................................................. 24
3.1 Introduction............................................................................................................................ 24
3.2 Research Design .................................................................................................................... 24
3.3 Research Approach ................................................................................................................ 24

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3.4 Target population ................................................................................................................... 24
3.5 Validity of Research Instruments ........................................................................................... 24
3.6 Data Analysis ......................................................................................................................... 25
3.6.1Measurement of variables ................................................................................................ 26
3.8 Ethical Consideration ............................................................................................................. 26
CHAPTER FOUR ....................................................................................................................... 27
RESULT AND DISCUSSION .................................................................................................... 27
4.1 Response Rate ........................................................................................................................ 27
4.2 Effectiveness of M&E............................................................................................................ 27
4.3 Competence of Staff handling the M&E ................................................................................ 29
4.4 Organizational leadership ...................................................................................................... 30
4.5 Stakeholder Participation ....................................................................................................... 32
4.6 Budget Allocation for M&E................................................................................................... 34
4.7 Correlation Analysis .............................................................................................................. 36
4.8 Summary of findings.............................................................................................................. 37
4.9 Discussion of the Findings ..................................................................................................... 38
CHAPTER FIVE ......................................................................................................................... 41
CONCLUSION AND RECOMMENDATIONS ......................................................................... 41
5.1 Introduction............................................................................................................................ 41
5.2 Conclusion of the study ......................................................................................................... 41
5.3 Recommendations .................................................................................................................. 42
5.4 Suggestions for further research ............................................................................................. 42
REFERENCES ............................................................................................................................ 43
Questionnaire ............................................................................................................................... 46

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 CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Monitoring and evaluation is an orderly process, which measures the development of

ongoing tasks and identifies limitations for prompt remedial action (WHO, 2008). Mainly,
the aim of M&E is to propose trustworthy choices grounded on data that can be collected
to aid in decision making. It permits ongoing learning and feedback during all the stages
of project development such as designing, planning and proper implementation. It also
includes critically assessing the results achieved and relating them to the initial objectives
set out for the project in question (Wagner et al., 2005).

Monitoring and Evaluation is becoming an area of growing importance for many

organizations in banking sector. It allows those involved in banking activities to learn from
experience, to achieve better results and to be more accountable. There is increased interest
in M&E among the commercial banks due to a stronger focus on the results produced by
interventions. M&E processes allow those involved to assess the impact of a particular
activity, determine how it could be done better and show what action is being taken by
different stakeholders. This should translate into a more effective and transparent way of
working (World Bank, 2002). In the absence of effective monitoring and evaluation, it
would be difficult to know whether the intended results are being achieved as planned,
what corrective action may be needed to ensure delivery of the intended results, and
whether initiatives are making positive contributions towards human development (World
Bank, 2011).

Monitoring and evaluation systems is a set of components which are related to each other
within a structure and serve a common purpose of tracking the implementation and results
of a project (SAMDI, 2007). An M&E system is made up of four interlinked sections,
which are: setting up of the M&E systems, implementation of the M&E systems,
involvement of the project stakeholders, and communication of the M&E results (Guijt et
al., 2002). Theoretically, „an ideal M&E system should be independent enough to be
externally credible and socially legitimate, but not so independent to lose its relevance‟
(Briceno, 2010). It should therefore be able to influence policy making from
recommendations of lessons learned as well as be sustainable overtime for it to be
responsive to the needs of the stakeholders.

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Globally, Monitoring and evaluation systems have been in existence since the ancient times
(Kusek and Rist, 2004), however today, the requirements for M&E systems as a
management tool to show performance has grown with demand by stakeholders for
accountability and transparency through the application of the monitoring and evaluation
by the NGOs and other institutions including the government. Development banks and
bilateral aid agencies also regularly apply M&E to measure development effectiveness as
well as demonstrate transparency (Briceno, 2010).

The rapid growth of ICT has made some bank related tasks more cost effective and
generally efficient, investments in technology are using up a big portion of bank‘s
resources. Currently, other than employee costs, technology is typically one of the main
items in banks budgets, and also the fastest rising one (Aduda and Kingoo, 2012).
Application of e-banking necessitates investment in information technology by service
providers taking the internet banking route. For such investment to do well, customers need
to appreciate its worth, or show their reluctance to utilize it well (Speece, 2004).

The fact that by using better technology and systems, banks can garner more customers,
retain existing ones and channel more of the customers’ business to its counters has forced
business development departments to now look at IT as an effective marketing tool. On the
operational side, the power of IT in reducing transaction costs, providing better customer
service and offering an over-all customer convenience has basically made this a win-win
situation for both banks as well as its clients. These have become the main drivers for
getting IT the importance it has got in banks in recent times.

1.2. Back ground of the company

The commercial Bank of Ethiopia which is striving to embark into a world class bank is
rendering state of the art and reliable services to its millions of customers both locally and
abroad. The business strategies of the bank focus on the stakeholder it serves. The state
owned commercial bank of Ethiopia, still dominates the market in terms of assets, deposits,
and capital and customer base and branch network, despite the growing completion from
private banks over the last 20 years. This makes it one of the most reliable and strong
commercial bank, both in the country and region. Its strong capital base, above 75 years of
rich experience in the market and having more than 1300 branch networks throughout the
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country enabled the bank to accommodate large demands for banking services, both from
private and public companies, and to increase its overall revenue on a sustainable basis.

The bank engages in different projects to meet its vision (to be a world class commercial
bank by 2025). Projects on software and buildings are among the projects undertaken under
the owner of commercial bank of Ethiopia. These projects to be effective should be
monitored and evaluated. Among those projects, enterprise resource planning project,
customer relationship management system, call center project, agent banking project
learning management system project, risk management project and upgrade data center
project are among the various IT projects in CBE.

As it is mentioned by Ermias H. in 2007, Monitoring is management’s continuous

examination of progress achieved during the implementation of an undertaking to track
compliance with the plan and to take necessary decisions to improve performance and
Evaluation is a systematic and impartial assessment of a project, program, strategy, policy,
institutional performance, etc. it focuses on expected and achieved accomplishments,
examining the results chain and processes, in order to understand achievements and the
lack thereof.

Commercial bank of Ethiopia as the largest commercial bank in Ethiopia, have many
projects related to information technology. Furthermore, the bank is working to be world
class commercial bank by the year 2025. Having this vision the bank is applying many
projects on technologies and construction buildings. Since the deadline for its vision is
approaching projects should be on budget and schedule. Effective monitoring and
evaluation is one of the important tools to maintain the project on track.

1.3.Statement of the Problem

As the banking industry expands, the competition among various banks become intensive;
as a result, the implementation of innovative banking services and the adoption of
technological systems is mandatory for their sustainability. Despite the growth of
technological adoption worldwide, Ethiopian banks were to conduct most of their banking
transactions using traditional methods. However, the financial services industry has
recently been opened to historic transformation that can be called e-development or e-
banking services such as SWIFT system, Internet banking, mobile banking, phone banking,

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ATM, and others which facilitate customers demand, liberalization and consolidation of
financial markets.

Monitoring and evaluation, although very essential in improving performance, is also very
complex, multidisciplinary and skill intensive processes (Engela and Ajam, 2010).
Building a resulted based M&E system is a requirement to improving performance to check
impact and benefits brought by the projects. Hence there is a need for establishment of
rules for constructing minimum parameters for monitoring and evaluation for projects that
can be used to track progress and effectiveness (Jha et al., 2010).

E-banking has distinctive characteristics that may escalate organization‘s total risk
portfolio and the levels of risk typical with traditional banks, predominantly operational,
reputation, legal, and strategic risks (Nicoleta, 2009). Various factors including customer
service, demographic considerations and competitive costs encourage banks to appraise
their existing technology and evaluate their e-banking and e-commerce methods. The main
undertaking for banks is to maximize the benefits of e-banking technology and ensure that
they are higher than the risks and cost associated with carrying out business on the internet
(Internet Banking Comptroller‘s Handbook, 1999). Thus, in absence of proper monitoring
and evaluation of these projects it is challenging to pinpoint if indeed the envisioned
outcomes are being achieved as per plan, the level of remedial action needed to guarantee
completion, and determine if the outcomes are creating a positive influence (UNDP, 2009).

On the other hand, monitoring and evaluation assists organizations in extracting pertinent data
from the historical and current undertakings such that they may be useful as the foundation for
programmatic future planning, reorientation and adjustment (UNDP 2009). Recently, growth
in the study of monitoring and evaluation has been rapid, moving away from conventional
methods to result-based methods. However, monitor and evaluation programs have developed
into a large business in the development industry, however, are less established in the profit-
making sector like banks.

Worldwide projects have experienced numerous barriers in their implementation. As a

solution, project monitoring and evaluation are key elements in improving project
performance. These barriers are primarily influenced by the kinds of measures being used
and the minimum amount of attention given to the practice. The effectiveness and success
of every monitoring plan depend largely on the capacity of the institution or individual

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mandated to undertake the activity. Implementation of project monitoring and evaluation
is therefore challenged with weak institutional capacity.

Commercial banks of Ethiopia play an important role in the country’s economic growth,
as it continuously channel funds from depositors to investors and therefore for a sustainable
intermediation function banks need to be profitable. It is therefore important that banks
effective implementation and progress in improving its profitability be properly monitored
and supervised. In most cases, the element of effectiveness of M&E systems is not
evidently emphasized. There has been growing pressure to improving projects performance
and show results in many organizations. M&E is leaning towards results hence emergence
of results based M&E.

However, several reviews and studies carried out indicate that serious gaps exist in the
M&E systems. These are; (1) Too much emphasis by commercial banks on financial
reporting; (2) Identified risk factors which are inadequately monitored; (3) Monitoring and
evaluation not done on a timely manner; (4) Performance indicators not used in M&E
reports; (5) Capacity limitation in terms of skills and number of M&E professionals; (4)
M&E reports not disseminated on time; (5) Inadequate incentive mechanism system for
monitoring and evaluating activities (ADB, 2016).

Therefore, the M&E system in the bank need of attention and improvement, hence the
background against which the study was carried out, that is, to examine the factors
influencing of M&E systems in commercial bank of Ethiopia. Many studies have been
undertaken on M&E frameworks, but most of these focus on the content of the M&E
systems such as the M&E plan (framework) and individual tools, rather than on the whole
M&E system.

The four independent variables that were discussed in this study, namely; budgetary
allocation for M&E, stakeholders’ participation in M&E, technical expertise of the staffs
in M&E and organization’s leadership had a high propensity of influencing effectiveness
of monitoring and evaluation. The study aimed at determining the extent to which these
factors influence the effectiveness of M&E of IT projects among commercial banks in
Ethiopia.

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1.4 Research questions
I. What is the relationship between competences of staff handling M&E and
effectiveness of M&E of IT projects by commercial bank Ethiopia?
II. What is relationship between budgetary allocation influence effective M&E of IT
projects by commercial bank Ethiopia?
III. What is the relationship between stakeholder participation influence effective
M&E of IT projects by commercial bank Ethiopia?
IV. What is the relationship between Organizational Leadership influence effective
Monitoring and Evaluation of IT projects by commercial bank Ethiopia?

1.5 General objective of the study

The general objective of this study was to investigate factor influence effectiveness
monitoring and evaluation of IT projects among commercial banks in Ethiopia.
1.5.1 Specific objectives of the study
I. To assess the influence of competence of staff handling M&E on effective M&E of IT
projects by commercial bank of Ethiopia.
II. To identify the influence of budgetary allocation on effective M&E of IT projects by
commercial bank of Ethiopia.
III. To assess the influence of stakeholder participation on effective M&E IT projects by
commercial bank of Ethiopia.
IV. To identify the influence of Organizational Leadership on effective M&E IT projects
by commercial bank of Ethiopia.

1.6 Scope of the Study

The study was focus only on commercial bank of Ethiopia information technology projects.
The study was target 62 personnel who are working in commercial bank of Ethiopia project
office and directly or indirectly involved in the implementation of such projects. The study
was also limit itself to the factors influencing effective monitoring and evaluation of
commercial bank of Ethiopia IT projects such as automated teller machine, electronic cash
transfer, mobile banking and internet banking projects. The variables under study were
include; competence of staff handling monitoring and evaluation, stakeholder participation
and budgetary allocation and organizational leadership.

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1.7 Significance of the Study
This study might particularly help banks and project managers in better understanding of
the M&E systems and how to improve them to be able to better monitor and evaluate and
also meet the expectations of the stakeholders, as well as provide valuable information for
future interventions. It may inform policies towards setting up of monitoring and evaluation
systems, and show how M&E can be used as a powerful management tool to improve the
way organizations and stakeholders can achieve greater accountability and transparency.

Findings may be used for organizational learning and improve projects planning,
implementation, and management. It might enable the project managers and other staff to
understand and appreciate the ever-changing environment. The result of this study may be
adopted by any bank realistically to plan and formulate its projects policies that are geared
to improving the overall performance. It may further give a deeper insight to those who are
charged with M & E to effectively implement the required processes.

The academicians, policy planners, and researchers might also benefit by getting new areas
of study and improvements. Overall, the study recommendations might improve
effectiveness of monitoring and evaluation in projects and provide comprehensive
guidance on how to set up and implement a monitoring and evaluation system by avoiding
the pitfalls that may lead to its failure. The study also identified areas related to M&E field
that might require more research, hence a basis for further research.

1.8 Limitations of the study

The credibility of the findings depends on the accuracy of the answers from the
respondents. Therefore, there might be a limitation on the accuracy of the questionnaires
responses and other query information. At the same time, since the survey instrument
quantitatively measures there search perceptions regarding project factors related to
effectiveness of monitoring and evaluation; degree of subjectivity was inherent to the data
collected. Because of this, systematic variance in the survey population due to either known
or unknown influences could cause bias.

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1.9 Definition of significant terms
Effectiveness - The measure of the degree to which the formally stated project objectives
have been or can be achieved.
Effectiveness of Monitoring and Evaluation System: The measure or the ability of M&E
system to meet its intended or set objectives. It is the ability of the system to produce
expected and relevant findings or results.
Monitoring: High-quality monitoring of information encourages timely decision-making,
ensures project accountability, and provides a robust foundation for evaluation and
learning. It is through the continuous monitoring of project performance that you have an
opportunity to learn about what is working well and what challenges are arising. Job
descriptions of staff involved in managing and implementing projects should include
assigned M&E responsibilities.
Evaluation: Depending on its specific purpose, a high-quality evaluation provides
information that enables you to improve an ongoing project, judge the overall merits of a
project, or generate knowledge about what works and what doesn’t to influence an
organization’s strategy and policy.
Monitoring –refers to the day-to –day systematic collection and occasional analysis of
data during the course of project implementation.
Evaluation – is the analysis of the effectiveness and direction of project activity/output or
outcome; it involves making a judgment and comparison between the project initial plan
/objective and the actual work done.
Budgetary allocation: The process where organizations project the level of expenditure it
might incur and set aside funds to ensure that the expenditures are meet when due.
Stakeholders’ participation: The process where organizations involve people who may
be affected by decisions it makes or can influence the implementation of its projects.
Technical skill: Knowledge and proficiency in certain specialized field needed to
accomplish specific task
Organization leadership: These are individuals tasked with making key decisions and
policies in an organization. These include directors, senior managers, departmental
managers, line managers etc.
Information technology Systems: of hardware and/or software that capture, process,
exchange, store, and/or present information, using electrical, magnetic, and/or
electromagnetic energy

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M&E System Well-organized, interdependent activities or components and clear
procedures that contribute to a well-defined purpose of M&E within a project. An M&E
system integrates more formal, data-oriented tasks (for example, collecting information on
logical planning framework indicators) with informal monitoring and communication. It
ensures that people responsible for M&E can do their jobs.
Stakeholders Individuals, groups, and institutions important to, or who have influence
over, the success of the project.
Theory of Change An articulation of how a proposed project strategy will lead to the
achievement of the project’s Strategic Objectives.

1.10 Organization of the Study

Chapter one outlines the background of the study and the statement of the problem. The
chapter further outlines the objectives and research questions that guided the study then
significance of the study. Lastly, the chapter states the limitations, delimitations and
assumptions of the study.
Chapter two of the study was to examine into details the existing body of knowledge to
create logical association between the identified variables and establish the probable gaps
in knowledge. The chapter as well presented the theoretical background of the study.
Lastly, a conceptual framework was illustrated diagrammatically to show the relationship
between the independent variable and the dependent variables.

Chapter three demonstrated the research design, the method of data analysis that was
adopted to analyze and interpret information collected from respondents. The validity and
reliability of the research instruments was discussed as well.
Chapter four was on the analysis of the data collected from the field. The analyzed data
was presented in tables that show the varying trends of responses. Further the chapter had
interpretation of the findings in write up to explain the tables.

Chapter five being the final chapter for the study, it described the summaries of findings
and again in tabular form with regard to the objectives of the study. Main findings were
discussed at length with linkages to existing knowledge. The chapter ended with a
conclusion of the study and suggested possible recommendation of the study problem.

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 CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
The literature review discusses previous studies relevant to the researcher’s topic of study.
The study within this review of literature focuses on objectives set out in chapter one. By
exploring these areas of literature, a significant contribution is made to this research.

2.2 Theoretical Review

Theoretical review is a collection of existing theories and models from literature which
underpin conceptual framework and subsequently inform the problem statement (Mugenda
& Mugenda, 2008). Theories are analytical tools for understanding, explaining, and making
predictions about a given subject matter. A theory is a set of statements or principles
devised to explain a group of facts or phenomena especially one that has been repeatedly
tested or is widely accepted and can be used to make predictions about natural phenomena
(Hawking, 2003).

Theories are important in predicting, explaining and mastering phenomenon (behaviour of

systems, events, activities of employees and time). Theoretical frameworks are
explanations about a phenomenon and according to Marriam (2001) theoretical framework
provides the researcher the lens to view the world. A theory is an accepted fact that attempt
to provide a plausible or rational explanation of cause- and-effect (causal) relationship
among a group of observed phenomenon (Kothari, 2004). According to Evenett and
Hoekman, (2008), theories can be classified according to their scope, function, structure
and levels. The relationship depicted by these theories and models is therefore reflected in
this section of the literature concerning factors influencing monitoring and evaluation of
IT projects.

2.2.1 Rogers Innovation Diffusion Theory

(Rogers, 1983) considers the process of innovation diffusion as one which is dictated by
uncertainty reduction behavior amongst potential adopters during the introduction of
technological innovations. Despite innovations offering its adopters new ways of tackling
day-to-day problems, the uncertainty as to whether the new ways will be superior to
existing ones presents a considerable obstacle to the adoption process. (Niederman,

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Brancheau and Wetherbe, 1990) assert that to counter this uncertainty, potential adopters
are motivated to seek additional information, particularly from their workplace peers.
According to Rogers (1983), suggests key characteristics of innovation that consistently
influence the adoption of new technologies: complexity, which is the degree to which an
innovation is perceived as being complicated to use; observability, which is the degree to
which the results of an innovation are observable to others; demonstrability, which is
tangibility of results of adopting an innovation relative advantage; compatibility, which is
the extent to which an innovation is perceived to fit together with potential adopters’ habits
and practices; and trial ability, which is the degree to which innovation may be sufficiently
tested prior to adoption.

Moreover, Moore & Benbasat, (1991) add image and visibility to key features of
innovation that consistently influence the adoption of new technologies. Image refers to
the self-perception that adopting an innovation could result in enhanced social status for
individual amongst his/her peers. Visibility on the other hand, refers to the degree to which
prospective users see an innovation as being visible in the adoption context.

Several reasons exist as to why organizations may choose to invest in monitoring and
evaluation (M&E). These reasons include quicker response on current project, better
financial control, better communications, and flexibility to satisfy beneficiaries, possibility
of sharing common information, easier to use lots of data and possibility of
telecommunicating (Olalusi &Jesuloluwa, 2013). Nonetheless, these benefits derived from
M&E can be undermined by user reluctance to accept and use the new technologies at their
disposal (Davis, 1989). However, M&E promises can only be realized if the intended users
of technology utilize it in manner that will contribute both to the strategic and operational
objectives of the organization. One recent finding, for example, is that the organizations
with more slack resources and higher levels of managerial ownership innovate less when
organization performance declines (Latham, Braun 2018). Another finding is that the
network density of organization’s partners strengthens the influence of technological
diversity, which in turn increases the firm’s innovation performance (Phelps 2015). The
theory of innovation diffusion instigated the first research objective of the study that is to
establish the effect of staff technical capacity on effectiveness of monitoring and evaluation
of IT projects by commercial bank of Ethiopia.

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2.2.2 Stakeholder Theory
A stakeholder is “any group or individual who can affect or is affected by the achievement
of an organization’s objectives” (Freeman, 1984).It is well known that companies produce
externalities that affect different stakeholders. These externalities often cause stakeholders
to increase pressures on companies to reduce negative impacts and increase positive ones.
The theory suggests that a firm should pursue strategies that consider the parties affected
by decisions while trying to minimize damage or maximize benefits to the representative
groups (Freeman 1984). This calls for governments to think beyond financial performance
but have obligations towards society and its constituent groups, (Jones, 1980). In this
interplay monitoring and evaluation go beyond the traditional fiduciary duties to
shareholder and extend to the customers, employees, suppliers and neighboring
communities (Jones, 1980). Clarkson (1995) perceived the firm as a system of stakeholders
considered as a legal entity which operates for the benefit of the society. He held that the
purpose of the firm was to create wealth or value to the equity holders and stakeholders.

The monitoring and evaluation in particular has to meet the different needs of stakeholders,
particularly when development projects are introduced (de Brito et al., 2008). According
to Boyne (2002, public projects are owned collectively by members of political
communities and this comes with it the pressure to meet the interest of all stakeholders.
Governments usually create environmental regulators as governmental agencies that have
the authority to formulate project requirements and inspect the projects compliance to those
requirements and those that fail to comply risk incurring non-compliance penalties
(Henriques & Sadorsky, 1996) and having their operating permits recalled and the
operations closed. In aggregate, the above views point to the fact that there is a positive
relationship between stakeholder pressures and the effectiveness of monitoring and
evaluation. The above theory relates to stakeholder involvement on monitoring and
evaluation on performance of water projects.

2.2.3 Theory of constraints

According to Goldratt & Cox (1986) formulated this theory in production environment
explaining that the throughput rate of a system is determined by bottleneck. This introduced
theory of constraints as a means of managing a factory production process with an aim of
maximizing throughput rate. Maximizing throughput rate would in turn maximize profit,

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cash flow and return on investment. In the multi-project environment, theory of constraints
is applied as critical chain methodology using the same principle of a capacity constrained
resource. This critical chain methodology is used by large companies such as Hitachi
(Umble Umble&Murakami, 2006), ABB, Boeing, Helwett Packard and others (Stratton,
2011) for project management. Even a small company can implement the full Critical
Chain as the software is available at USD250 (Stratton, 2011).
Monitoring and evaluation was shown to be an approach with significant differences to
traditional critical path scheduling (Steyn, 2001) (Rand, 2000) (Lechler, Ronen &Stohr,
2005). In a large multi-project environment, like construction industry, (Jyh-Bin Yang,
2007) pointed out that a construction industry would benefit greatly from critical allocation
of budget scheduling. The construction industry uses multiple costly resources in the
context of multiple projects executed by a single company. He pointed out that there are
definite benefits and did so from a theoretical basis. Case studies exists for large companies
such as Impala Platinum (Philis&Gumede, 2011) and complex project such as
refurbishment of C-5 aircraft (Best, 2006) but literature is sparse for urban development
projects The above theory relates to the budgetary allocation on monitoring and evaluation
on performance water projects.

2.2.4 Financial Literacy Theory

Financial literacy theory argues that the behavior of people with a high level of financial
literacy might depend on the prevalence of two thinking styles according to dual-process
theories: intuition and cognition. Dual-process theories embrace the idea that decisions can
be driven by both intuitive and cognitive process. Dual process theories have been applied
to several fields, including reasoning and social cognition (Evans 2008). Financial literacy
covers the combination of investors' understanding of financial products and concepts and
their ability and confidence to appreciate financial risks and opportunities, to make
informed choices, to know where to go for help, and to take other effective actions to
improve their financial well-being (Atkinson and Messy, 2005).

Financial literacy empowers investors by educating them to acquire relevant knowledge

and skills in financial management on projects. Financial knowledge helps to overcome
most difficulties in advanced projects. Financial literacy allows the investors to encounter
difficult financial times, through strategies that mitigate risk such as accumulating savings,

13
diversifying assets, and purchasing insurance for the projects. More importantly, financial
literacy enhances decision making processes such as payment of bills on time, proper debt
management which improves the credit worthiness of potential borrowers to support
livelihoods, economic growth, sound financial systems, and poverty reduction. Financial
literacy leads to more effective use of financial products and services, greater control of
one's financial future and reduced vulnerability to overzealous retailers.

Financially literate investors are able to create competitive pressures on financial

institutions to offer more appropriately priced and transparent services, by comparing
options, asking the right questions, and negotiating more effectively. Investors are able to
evaluate and compare financial products, such as bank accounts, saving products, credit
and loan options, payment instruments, investments, insurance coverage, so as to make
optimal decisions (Miller et al 2009). Greenspan (2002) argues that financial literacy helps
to inculcate individuals with the financial knowledge necessary to create household
budgets, initiate savings plans, and make strategic investment decisions. Proper application
of that knowledge helps investors to meet their financial obligations through wise planning,
and resource allocation so as to derive maximum utility for the projects. The theory relates
to budgetary allocation on monitoring and evaluation on performance of IT projects on this
study.

2.2.5 Human Capital Theory

From an organizational perspective, the human capital theory hypothesizes that in a
perfectly operating labor market, organizational productivity increases as individuals
become more highly trained. The overall link between training and development to
productivity at the workplace is based on a concept referred to as factor pricing, Maglen
(2008). According to Livingstone (1999), human capital theorists insist on the importance
of investment in education and imparting of the value of the worker. The theory assumes
that organization specific training, such as in the events of changes, is likely to increase the
organization long term productivity results on their training investment. The employees are
more likely to have a better understanding of the structures resulting from the change and
will use them appropriately to ensure productivity to the project Bosworth, Wilson &
Assefa (1993). Hence, Maglen (2008) asserts that this leads to employees’ satisfaction and
will also influence the level of employee engagement thus project performance.

14
A proper investment in training and development by an organization on its employees
increases their understanding of their duties, tasks and obligations. Training also creates a
conducive environment for cooperation and collaboration within employees in performing
their work. This based on the human capital theory, results in both individual and firm-
wide productivity Juan (2010). The human capital theory proposes that sustainable
competitive advantage is attained when an organization has a human resource pool that
cannot be imitated or substituted by its competitors. According to Ngugi(2013), human
capital theory emphasizes the value addition that people are assets and emphasizes
investment in people generate worthwhile returns for competition key among them in
performance, productivity, flexible and capacity to innovate. The above theory relates to
competence of staff in handling M&E on effectiveness monitoring and evaluation of IT
projects.

2.3 Empirical Review

This section reviews related literature as documented by other scholars. The review is done
based on the study objectives.

2.3.1 Concept of Effectiveness of Monitoring and Evaluation System for Projects

Monitoring and evaluation are thinly distinct elements within the project management
cycle but are highly dependent and mutually of significant importance to project
sustainability (UNDP, 2017). Monitoring is the process through which the essential aspects
of project implementation such as reporting, usage of funds, record keeping and review of
the project outcomes are routinely tracked with an aim of ensuring the project is being
implemented as per the plan (Mackay, (2007). Monitoring is undertaken on a continuous
base to act as an internal driver of efficiency within the organization’s project
implementation processes and its main agenda is to develop a control mechanism for
projects (Crawford and Bryce, 2013). Evaluation is a definite and systematic approach
geared towards reviewing an ongoing project to ensure that it meets the goals or objectives
that were fundamental to its undertaking (Uitto, 2014). Monitoring and evaluation should
offer comprehensive and relevant data that will support decision making (Jody and Ray,
2004). Project evaluation serves various purposes; first, to inform decisions for project
improvement by providing relevant information for decision making concerning setting

15
priorities, guiding resource allocation, facilitating modification and refinement of project
structures and activities and signaling need for additional personnel (Mulwa, 2008).
Secondly, evaluation provides a process of learning. By learning from the past, one is able
to improve the future. Further, evaluation helps project managers to develop new skills,
open up to the capacity of constructive self-criticism, to objectivity and to improve on
future planning as a result.

Evaluation creates future benchmarks to guide evaluations of other projects. It also helps
in creating a knowledge bank for management which is an ideal trend in contemporary
world where organizations are leaning towards knowledge management in project
management (Calder, 2013). Lastly through evaluations, project managers are able to
access how projects faired in terms of meeting the budgetary limits as well as in terms of
efficiency (Spaulding, 2014).

A monitoring and evaluation system is a component designed to screen, track and make
comparison of the project outcomes against the stated or planned targets (SAMDI, 2017).
It is comprehensive undertaking that offers guidance in the screening and tracking of an
ongoing project, recording data and systematically evaluating the data for comparison
purposes in line with the project’s set goals and objectives (Kerzner, 2013). M&E system
is an integral system of reflection and communication supporting project implementation
that should be planned for and managed throughout a project’s life (Nyonje, Kyalo and
Mulwa, 2015).

Key aspects of monitoring and evaluation are the setting up of the system, implementing
the system, involving all stakeholders and communicating the results of the monitoring and
evaluation process. A monitoring and evaluation system should be as relevant as possible
to the organization to ensure its reliability and independence (Gaarder&Briceño, 2010). An
effective & E system should be able to offer conclusive information that can effectively be
utilized towards better project success. Through the system, any stakeholder should be able
to identify the potential benefits of the project, ways of enhancing screening and tracking
of the project as well as offer an outline of the successes, challenges and opportunities for
future projects undertakings (Briceno, 2010).

In order to foster the support of the employees, an effective monitoring and evaluation
system should seek to enhance communication and interaction among the personnel which

16
will help to build up teamwork within the project. Similarly, the involvement of the project
stakeholders should not be downplayed as these are the people who own and are directly
affected by the project successes and impacts (Blackstock, Kelly, & Horsey, 2017).

Effectiveness of the M&E system focuses on expected and achieved accomplishments,

processes, examining the results chain, contextual factors and causality, in order to
understand achievements or the lack of achievement. Objectives of a development project
should be consistent with the requirements of beneficiaries and organization’s strategies,
and also the extent to which they are responsive to the organization’s corporate plan and
human development priorities such as empowerment and gender equality. Development
initiatives and their intended outputs and outcomes should also be consistent with national
and local policies and priorities (Kusek and Rist, 2014). Monitoring and evaluation
activities enable the stakeholders determine whether the body undertaking project
implementation has adequate legal and technical mandate to implement projects on their
behalf (Kimenyi, 2015). Post completion assessment is done to correlate between plans
and real impact of the project. Evaluation looks at what the project managers planned, their
accomplishments so far and how they achieved them. This can be doneat the early stages
of the project life or at the end of the implementation (Mulwa, 2017).

Resources allocated to projects should be used economically since they are limited. When
running a project and are concerned about its reliability or about going to scale, then it is
very important to get the efficiency element right. Use of monitoring and evaluation system
is therefore a basis for evaluating the effectiveness of project delivery processes (Naoum,
1991 andLing & Chan, 2012). They describe monitoring and evaluation system as the
assessment of project success and use objective factors, including time, cost and quality
objectives, and subjective factors, which are concerned with the assessment of
stakeholders' satisfaction.
Successful project managers diligently and regularly review progress against the schedule,
budget and quality elements of the project. Regular reviews allow problems to be identified
early so that corrective action can be taken to keep the project on track. The reviews can
provide clear and adequate provision for monitoring and evaluation events. A monitoring
and evaluation budget should be delineated within the overall project costing to give the
monitoring and evaluation function the due recognition it plays in project running (Mackay,
2017).

17
Efficiency of project planning improves overall monitoring and evaluation of projects,
management and implementation with the sole aim of having an impact on the socio-
political and economic status of the community. Project information should be obtained in
an orderly and sequential manner as the project is on-going. Monitoring is done in
accordance to the prior set targets and its activities are predetermined during the planning
phase. These activities ensure that everything is on track and will enable the project team
detect early enough when deviations occur. If monitoring is conducted as expected, it is a
very important management tool that acts as a basis for project evaluation since through it,
sufficiency and adequacy of available resources is determined. Basically, project
monitoring involves a systematic and continuous assessment of how the project is being
implemented against initially set plans, activities, and other deliverables (Mulwa,&Nguluu,
2013).

2.3.2 Stakeholder’s participation and Effectiveness of a Monitoring and Evaluation

Stakeholder participation is described as a social process in which groups with shared needs
living in a “certain geographical area” actively identify needs, make decisions, and set up
mechanisms to achieve solutions/goals (Adesina, 2010). However, heterogeneous groups
and individuals can become a stakeholder and collectively take action to attain shared and
specific goals. To enhance stakeholder involvement in monitoring and evaluation can
involve in tendering and supplies, several measures are put in place to facilitate smooth
and transparent implementation of projects. These measures include: registration of
contractors/suppliers and artisans, provision of information on tendering and supplies
guidelines, and formation of a subcommittee for vetting and recommending suppliers
(Achoka, 2013). This is also to ensure that the development project money remains to be
utilized to the satisfaction of the stakeholders.

Stakeholders may be involved to use and coordinate their resources of personnel, time,
money, goods, and services in a broad range of structures and strategies. Additionally,
people- and community-based organizations often participate at different levels in
implementation of urban development projects, thus can provide useful information for
M&E of the project funds. They may have less access to resources than do government
institutions and agencies and may view themselves as tokens that make the health-

18
promotion effort look more credible (Otieno, 2007).It is best to involve key stakeholders
such as volunteers, community members, local authorities, partners and donors, as much
as possible in the evaluation process since their participation helps to ensure different
perspectives are considered so that the evaluation findings can be owned and act as a lesson
[Gray & Larson,2008)].

Lack of stakeholders’ participation project activities lead to unclear project activities.

These projects often lack support from the key and primary stakeholders and beneficiaries.
Stakeholder involvement makes everyone feel part and parcel of the project, they own the
project and take all necessary steps to safeguard the required standards (Kanua, 2009).

2.3.3 Budgetary allocations to M&E and Effectiveness of a Monitoring and Evaluation

The project budget should provide a clear and adequate provision for monitoring and
evaluation activities. The M&E budgetary allocation should clearly be delineated from the
main project budget so that M&E unit is accorded some autonomy in utilization of its
resources (Gyorkos, 2003). M&E budget should be about 5 to 10 percent of total projects’
budget which will give the M&E unit adequate resources to ensure its effectiveness (Kelly
and Magongo, 2004). However, according to Gitonga (2012), there is no specific
percentage to be allocated for M&E but normally varies between 2.5% and 10% depending
with the overall budget and the project. Gitonga further states that the more participatory
M&E is, the higher its budget. Frankel and Gage (2007) concur with Gitonga by stating
that there is no set formula for proportion of project’s budget to be allocated to M&E. Most
donors and organizations recommend between 3to 10 percent of the project’s budget. The
general rule of thumb is that the M&E budget should not be too little as to affect the
accuracy and credibility of results and neither should it consume much resource to the
extent of interfering with other projects activities. M&E activities and their cost should be
estimated and properly be planned for to ensure funds needed are. This should be done at
the project design stage so that funds are allocated specifically to M&E and are available
to implement M&E tasks (Chaplowe, 2008). Resources allocation should be undertaken
within organizations towards their monitoring and evaluation system in controlled manner
to ensure that this does not pose a challenge to the implementation of their strategy
(Mugambi and Kanda, 2013). Lack of adequate resources is an impediment to the success
of the system and process and organizations should ensure they have set aside sufficient
funds to support monitoring and evaluation activities (Gwadoya, 2011). Oluoch (2012) also

19
observes that lack of sufficient funds hinders performance of the monitoring and evaluation
systems.

In some organizations, there are no funds specifically allocated for M&E despite funds for
the projects. This has led to poor performance of the M&E system leading topoor
performance and failure of projects (Chaplowe, 2008). In a study by Mushori (2015) on
determinants of effective M&E of county government projects, he noted that M&E is
usually budgeted for but there is no specific allocation for its activities. Barasa (2014) in
his study observed that inclusion of M&E budget in the strategic plan is crucial and some
projects had stalled or performed poorly due to underfunding. He also notes that a budget
should be all-inclusive taking into account all cost and expenses likely to be incurred.

Financial availability is key to implement and operate a strong and effective monitoring
and evaluation system. IFAD (2002) observes that most developing countries are being
faced with the challenge of implementing a sound monitoring and evaluation due to lack
of control on their financial resources. Therefore, the donors need to put more emphasis on
the establishment of sound monitoring and evaluation systems through factoring this in the
funding (World Bank, 2002). This is the only way to ensure that projects achieve set goals
and have lasting and sustainable impacts on the beneficiaries.

2.3.4 Organizational Leadership and Effectiveness of a Monitoring and Evaluation

Organizational leadership is increasingly being regarded as a salient theme on the
effectiveness of monitoring and evaluation. The organization’s leaders should support and
be involved in the M&E activities for the process to be effective and successful. Project
managers should be involved directly but the organization senior management involvement
should be indirect. In fact, they should carry out some monitoring activities as part of their
overall work and from time to time monitor and evaluate their operations. Management
involvement enhances the credibility of the M&E process and ensures increased acceptance
of the findings (Khan, 2003).

The management plays a big role in allocation of resources, designing the system,
communication of results and making key decisions which affect projects and monitoring
and evaluation activities. Their commitment to the implementation of monitoring and
evaluation system is paramount. It is through this that they will ensure that adequate funds

20
and other resources are allocated to M&E. If there is no goodwill and support from
organization’s management, then the M&E system will perform poorly leading to
ineffectiveness (World Bank,2011).

The organization’s leader’s involvement in implementation and throughout the project or

program cycle ensures ownership, learning and sustainability of results and creates
effective communication, mobilization of resources to fill gaps. This also ensures use of
and lessons learnt in future interventions and in decision making (Chaplowe, 2008). An
effective M&E system should be able to provide information for short and long term
decisions and planning (CARE 2012). Results from M&E should be used to improve the
project strategy and operations. Project progress and problems must be shared with all
relevant stakeholders to enable learn and find solutions together. In her study, Wanjiru
(2013) observed that the role of leaders in M&E is very important in ensuring the process
is effective and successful. The management should utilize information from M&E in
decision making. They should act promptly to project demands and improvements. Reports
to funding agencies need to balance the success and mistakes, and above all, be analytical
and action-oriented.

2.3.5 Competences of Staff handling Monitoring and Evaluation

The technical capacity of the organization in conducting evaluations, the value and
participation of its human resources in the policymaking process, and their motivation to
impact decisions, can be huge determinants of how the evaluation‘s lessons are produced,
communicated and perceived (Vanessa & Gala, 2011). Building an adequate supply of
human resource capacity is critical for the sustainability of the M&E system and generally
is an ongoing issue. It needs to be recognized that growing evaluators requires far more
technically oriented M&E training and development than can usually be obtained with one
or two workshops. Both formal training and on-the-job experience are important in
developing evaluators. Two key competencies for evaluators are cognitive capacity and
communication skills (Gladys, Katia, Lycia & Helena, 2010).

Program and senior managers are important audiences for less technical training on M&E.
They need to have enough understanding to trust and use M&E information. This type of
broad training/orientation is critically important in building a results culture within
organizations. There are no quick fixes in building an M&E system investment in training

21
and systems development is long term. Various options for training and development
opportunities include the public sector, the private sector, universities, professional
associations, job assignment, and mentoring programs (Gladys, et. al, 2010).

In introducing an M&E system, champions and advocates are needed to sustain the
commitment needed over the long term. Identifying good practices and benchmarking help
avoid the fatigue that typically accompanies any change process, as enthusiasm starts to
wane over time. Evaluation professionals possess the necessary skill set to play a key role
in providing functional advice and guidance to departmental/agency managers about the
design and development of appropriate results-based performance monitoring systems.
While managers should be responsible for performance measurement and monitoring per
se, a recognized role for evaluators should be to provide such assistance and oversight on
results measurement and monitoring (Gladys et.al. 2010).

Mukhererjee (1993) says that meeting capacity needs will be ensured by acquiring the right
people, by hiring already trained people, training your staff, hiring external consultants for
focused inputs and also ensure the capacity of good quality through removing disincentives
and introducing incentives for learning, keeping track of staff performance through regular
evaluation, striving for continuity of staff and finding highly qualified person to coordinate.
Human resources on the project should be given clear job allocation and designation
befitting their expertise, if they are inadequate then training for the requisite skills should
be arranged. For projects with staff that are sent out in the field to carry out project activities
on their own there is need for constant and intensive on-site support to the outfield staff
(Ramesh, 2012 as cited in Musomba et.al, 2013). One of the larger aspects of developing
employee‘s skills and abilities is the actual organizational focus on the employee to become
better, either as a person or as a contributor to the organization. The attention by the
organization coupled with increased expectations following the opportunity can lead to a
self-fulfilling prophecy of enhanced output by the employee (Robinson & Pearce, 2004)

2.4 Chapter Summary

As the literature indicated, there were many studies conducted by different researchers.
The study assessed Monitoring and evaluation systems and performance of projects in
different parts of the world. Related studies in others countries globally and have been

22
analyzed and reveal that there exists a knowledge gap in Monitoring and evaluation
system’s. In conclusion, from the literature review done and a review of empirical studies
that have been done, it shows that a lot of effort has been put in place to have a result-based
and effective M&E systems. The empirical studies are indicative that there is need for
Monitoring and Evaluation as a management tool for decision making. However, little has
been done on area of assessment of Monitoring and evaluation systems of IT projects in
the developing countries. Management influence on M&E is minimal, personnel training
on monitoring and evaluation and stakeholder’s involvement on M&E systems has not
fully taken course on projects.

23
 CHAPTER THREE
RESEARCH DESIGN & METHODOLOGY

3.1 Introduction
This chapter presents the research methodology used in the study. It specifically address the
following: research design, target population, sampling size and sampling procedure, data
collection instruments, validity and reliability of research instruments, data collection
procedure, data analysis techniques and ethical considerations.

3.2 Research Design

The study adopts a descriptive research design in an attempt to answer the research problem.
A descriptive survey research design allows for an in-depth analysis and understanding of a
particular phenomenon as it exists in the present condition (Cooper and Schindler, 2008). In
descriptive survey research design, objectives are predetermined allowing data collection
relevant and sufficient to the study problem (Kothari, 2004).

3.3 Research Approach

Quantitative data collection method was used. By using quantitative data collection procedures,
descriptive research design allowed a researcher to gather exhaustive information in a way that
reduces cost of the data collection. In this study, cross sectional research design employed to
enable respondents describe the state of affair and factors that influence the effectiveness of
M&E Systems.

3.4 Target population

The study sought respondents from the project office in the banks’ head office which comprises
of project team derived from the Human Resource, Information Technology, Customer service,
Finance and Credit Departments. There are 62 clerical employees under project office. Since
the population is small, a census study adopted to the entire population of all the personnel
working under project office

3.5 Validity of Research Instruments

Validity indicates the degree to which an instrument measures what it is supposed to measure
while reliability of an instrument is when it gives consistent results (Kothari, 2004). Internal

24
validity will achieve by ensuring that questionnaire items are answering the research questions.
The answers in some questions were to verify or clarify earlier given answers. The questions
will phrase logically and sequentially in simple language. Before actual data collection, piloting
of the questionnaire was carried out. The questionnaire was sent out to 6 respondents working
under project office. A Cronbach alpha test was conducted to measure the internal consistency
and reliability of the data collection instruments.

3.6 Data Analysis

After data collection, the filled-in and returned questionnaires was edited for completeness,
coded and entries made into Statistical Package for Social Sciences (SPSS version 20). Coding
is technical process where raw data are transformed into easily tabulated form by way of
assigning symbols. This helps in condensing the responses into few categories for the purposes
of data analysis. The dataset was then subject to verification process to verify if the captured
data correlated with the data-capture into SPSS.

Structured questionnaire was used to collect data. The Structured questionnaire guided on how
to answer questions to avoid ambiguity and for easier data analysis. The likert scale was used
to measure the strength of respondents’ feelings or attitude towards statements that was
formulated on the variables and their dimensions. The variables were measured using ordinal
types of measurements on the scale of 1-5, represented by strongly disagree, disagree, not sure,
agree and strongly agree.

The Karl Pearson’s coefficient of correlation was used to determine the direction and strength
of the relationship between the variables. The Pearson’s correlation coefficient, r, measures the
strength of a linear regression between two variable (Gupta, 2004). The correlation coefficient,
r, can range from +1 to -1. A value of 0 indicates there is no association between the two
variables.
A positive correlation is represented by a value greater than 0. That is, as the value of one
variable increases the value of the other also increases (Cooper & Schindler, 2001). A value
that is less than 0 indicates a relationship that is negative, that is, as the value of one variable
increases the value of the other decrease (Cooper & Schindler, 2001).

25
3.6.1Measurement of variables
The likert scale was used to measure the strength of respondents’ feelings or attitude towards
statements that were formulated on the variables and their dimensions. The variables were
measured using nominal and ordinal types of measurements on the scale of 1-5, represented by
strongly disagree, disagree, neutral (not sure), agree and strongly agree.

Data was present in the form of frequency distribution tables, graphs and pie charts that
facilitated description and explanation of the study findings.

3.8 Ethical Consideration

The researcher recognizes that the issue under study is sensitive. Therefore, there was need to
protect the identity of the respondents as much as possible. This means that the questionnaires
did not require the respondent’s names or details that may reveal their identity. The researcher
also adhered to strict confidentiality of the information gathered and assured the respondents
that the research will meant for academic purposes only.

26
 CHAPTER FOUR
RESULT AND DISCUSSION
This chapter presented data analysis and interpretation of the research findings in three
sections. All three sections presented study responses on the assessment of Monitoring and
evaluation of information technology projects by commercial bank of Ethiopia. First, the
research response rate was computed and Presented, secondly the demographic information of
the respondents, then finally the findings on four key objectives areas of the study were
presented and interpreted using frequency tables, pie charts and bar graphs.

4.1 Response Rate

The study targeted 62 respondents drawn from Commercial bank of Ethiopia project
management office. Those respondents are working in CBE IT project in activities directly
related to M & E or indirectly participate in monitoring and evaluation of projects. 56 of them
responded and returned their questionnaires contributing to 90% response rate. According to
Mugenda and Mugenda (1999), a response rate of 50% is adequate for analysis and reporting;
a rate of 70% is good while a response rate of 90% and over is excellent; therefore, this response
rate was adequate for analysis and reporting.

Table 4.1 Response Rate

Questionnaires Administered Questionnaires filled & Percentage
returned

62 56 90%

Source: Survey Data, 2019

4.2 Effectiveness of M&E

The respondents were required to rate the effectiveness of their M&E. Based on the findings,
41.1% of the respondents indicated that the M&E was effective; 37.5% indicated it was very
effective; 5.4% indicated that the system was ineffective and 3.6% indicated that it was very
ineffective. 12.5% of the respondents indicated that they did not know whether the M&E
system was effective or not.

27
 effectiveness of monitoring angd evaluation
percent
100.0
100.0
90.0
80.0
70.0
60.0
50.0 41.1 37.5
40.0
30.0
12.5
20.0 3.6 5.4
10.0
0.0
strongly disagree neutral agree strongly Total
disagree agree

Figure 4.2: Effectiveness of M&E Source: Survey Data, 2019

The respondents were also requested to indicate the extent to which they agree or disagree with
the following selected attributes concerning effectiveness of M&E System.
Table 4.3Effectiveness of M&E
Descriptive Statistics

N Mean Std.
Deviation
Results and findings from M&E are relevant and
56 4.29 .594
useful

The M&E activities are carried out within schedule 56 4.18 .716

The cost of M&E activities is always within the budget 56 4.02 .798

The M&E objectives are largely achieved 56 3.89 .779

Valid N (listwise) 56

Source: Survey Data, 2019

The findings in the table 4.3 indicate that majority of the respondents agreed that results from
M& E are relevant and useful, the M & E activities are carried out within schedule cost of M
& E is always within the budget and that M&E resources are economically utilized with mean
scores of 4.29, 4.18 and 4.02 respectively. Some respondents were not sure whether M & E
objectives are largely achieved with a mean score of 3.89.

28
4.3 Competence of Staff handling the M&E
The respondents were requested to indicate the extent to which the competence staff handling
M&E determines the effectiveness of monitoring and evaluation system for projects.

competence of staff in handling M&E

Total 100.0

strongly agree 33.9

agree 41.1

neutral 17.9

disagree 7.1

0.0 20.0 40.0 60.0 80.0 100.0 120.0

Figure 4.3: Competence of Staff handling the M&E Source: Survey Data, 2019

From the findings, a high percentage of the respondents, 41.1% (23) agreed that the
competency of staff handling monitoring and evaluation determine the effectiveness of
monitoring and evaluation of IT projects while 33.9% (18) of the respondents strongly agree
that competency of staff handling M&E monitoring and evaluation determine the effectiveness
of monitoring and evaluation commercial bank of Ethiopia IT projects. 10 respondents (17.9
%) were neutral that competence staff handling monitoring and evaluation determine the
effectiveness of monitoring and evaluation system for projects. A relatively small number of
the respondents, 7.1% (4) indicated that they disagree 5.4 % that the competence staff handling
monitoring and evaluation determine the effectiveness of monitoring and evaluation of IT
projects. The results therefore indicated that most respondents were in agreement that the bank
needs competence staff who can handle M&E in efficient way thus leading effectiveness of M
& E system towards achieving expected results.

29
The study sought to determine the extent to which respondents agree or disagree with the
following statements concerning M&E in relation to the IT projects done the bank.
Table 4.4Competency of Staff handling the M&E

Descriptive Statistics

N Mean Std.
Deviatio
n

Staff has a Technical skills needed to conduct M&E 56 4.25 .667

Staff has got appropriate and timely training needed to conduct

56 4.14 .796
M&E

Valid N (listwise) 56

Source: Survey Data, 2019

From the finding the respondent agreed with the statement Staff has a Technical skills needed
to conduct M&E and Staff has got appropriate and timely training needed to conduct M&E
with mean value of 4.25 and 4.14respectively. This implies that many of the respondents had
Knowledge on M&E.

4.4 Organizational leadership

The respondents were requested to indicate the extent to which the level of commitment of top
leadership determines the effectiveness of monitoring and evaluation system for projects.

30
 organizational leadership
Percent
100.0
100.0
80.0
50.0
60.0
32.1
40.0
10.7
20.0 1.8 5.4

0.0
strongly disagree neutral agree strongly Total
disagree agree

Figure 4.4: organizational leadership towards effectiveness of the M&E

Source: Survey Data, 2019

From the findings, a high percentage of the respondents, 50% (29) agreed that the commitment
of top leadership determine the effectiveness of monitoring and evaluation system for projects
while 32.1% (18) of the respondents strongly agree that the commitment of top leadership
determine the effectiveness of monitoring and evaluation system for projects. 6 respondents
(10.7%) neutral to that commitment of top leadership determine the effectiveness of monitoring
and evaluation system for projects. These findings suggested that most staff working for
commercial bank of Ethiopia project office agree that commitment of top leadership determine
the effectiveness of a monitoring and evaluation system for IT projects in that top leadership
makes key and crucial decisions that affect projects M&E greatly.
Furthermore, the study asked the respondents to indicate the extent to which they agree or
disagree with the following selected attributes concerning organization leadership. The
findings are illustrated in Table 4.5.

31
Table 4.5: Organizational leadership

Descriptive Statistics

N Mean Std.
Deviation

The organization uses M&E findings in decision making 56 4.25 .611

Leaders always and clearly communicate M&E results 56 3.80 .749

Management ensures sufficient resources are allocated to M&E 56 4.23 .632

Valid N (listwise) 56

Source: Survey Data, 2019

From the findings, majority of the respondents agreed with the statements that Management
ensures sufficient resources are allocated to M&E; the organization uses M&E findings in
decision making with mean scores of 4.23, 4.25 and 4.14respectively. The staff of commercial
bank of Ethiopia project offices were also agrees Leaders always and clearly communicate
M&E results with mean score of 3.8. The results therefore indicate that Most of the staff felt
that the organization’s leadership has great and crucial role to play in ensuring that the M&E
system operates maximally and that the process is smooth.

4.5 Stakeholder Participation

The study sought to determine the influence of the influence of stakeholders’ participation on
the effectiveness of Monitoring and Evaluation as such respondents were asked to indicate the
extent of their agreement the following propositions

32
 stakeholder participation in M&E Percent
100.0
100.0

80.0

60.0 48.2
32.1
40.0

20.0 10.7
3.6 5.4

0.0
strongly disagree neutral agree strongly Total
disagree agree

Figure 4.5: stakeholders’ participation towards effectiveness of the M&E

From the findings, a high percentage of the respondents, 48.2% (27) agreed that the stakeholder
participation in monitoring and evaluation determine the effectiveness of monitoring and
evaluation of IT projects while 32.1% (18) of the respondents strongly agree that stakeholder
participation in monitoring and evaluation determine the effectiveness of monitoring and
evaluation commercial bank of Ethiopia IT projects. 6 respondents (10.7 %) were neutral that
stakeholder participation in monitoring and evaluation determine the effectiveness of
monitoring and evaluation system for projects. A relatively small number of the respondents,
10% (6) indicated that they disagree 5.4 % and strongly disagree3.6% that the stakeholder
participation in monitoring and evaluation determine the effectiveness of monitoring and
evaluation of IT projects. The results therefore indicated that most respondents were in
agreement that the organization involves the stakeholders in M & E thus leading to high level
of participation and this influences to a large extent the effectiveness of M & E system towards
achieving expected results.

The study requested the respondents to indicate the extent to which they agree or disagree with
the level stakeholders participate in the following aspects of M&E process. The mean and
standard deviations were bred from SPSS and are indicated in Table 4.6.

Table 4.6. stakeholders’ participation

33
Descriptive Statistics
N Mean Std.
Devia
tion
Stakeholders are adequately involved in designing and planning of
56 4.18 .741
M&E activities
Stakeholders are involved in M&E decision making process 56 3.68 .876
Stakeholders are involved in M&E data collection process 56 4.16 .757
the bank involves stakeholders in identification of indicators 56 3.61 .846
Valid N (listwise) 56
Source: Survey Data, 2019

From the findings, majority of the respondents agreed with the statements that Stakeholders
are adequately involved in designing and planning of M&E activities and stakeholders are
involved in M & E data collection process with a mean score of 4.18 and 4.16 respectively.
Majority also agreed that Stakeholders are involved in M&E decision making process;
Stakeholders are involved in M&E data collection process with a mean score of 3.68 and
3.61respectively.

4.6 Budget Allocation for M&E

The study sought to determine the extent to which respondents agree or disagree with the
following statements concerning M&E in relation to the organization’s projects. Table 4.7
shows the mean and standard deviations.

34
Table 4.7 Budget Allocation for M&E

Descriptive Statistics
N Mean Std.
Deviation
The bank provides sufficient funds for monitoring and evaluation
56 4.34 .668
activities

There is a separate budget allocation for M&E 56 4.18 .765

The bank ensures there is timely provision of funds allocated are

56 4.16 .781
used for M&E activities only
Valid N (listwise) 56

From the findings, majority of the respondents agreed with the statement that there is a separate
budget allocation for M&E system with a mean score of 4.18. The respondent also asked
whether the bank provides sufficient funds for monitoring and evaluation activities, the bank
ensures there is timely provision of funds allocated are used for M&E activities only most of
the respondent agreed with the statement with mean 4.34 and mean 4.16. This show that there
is higher understanding about the value of monitoring and evaluation of IT projects by
commercial bank. Sufficient funding is very crucial for the effective and M & E process to take
place.

35
 4.7 Correlation Analysis
Table 4.8 Correlation Analysis
Correlations
budget organiz stakeh Staff effective
allocat ational older capacity in monitorin
ion to leadersh partici handling g and
monito ip pation M&E evaluation
ring in
and M&E
evaluat
ion
budget Pearson Correlation 1
allocation to Sig. (2-tailed)
monitoring and
N 56
evaluation
Pearson Correlation .758** 1
organizational
Sig. (2-tailed) .000
leadership
N 56 56
stakeholder Pearson Correlation .757** .732** 1
participation in Sig. (2-tailed) .000 .000
M&E N 56 56 56
Staff capacity Pearson Correlation .754** .689 **
.771** 1
in handling Sig. (2-tailed) .000 .000 .000
M&E N 56 56 56 56
effective Pearson Correlation .836** .802 **
.858** .842** 1
monitoring and Sig. (2-tailed) .000 .000 .000 .000
evaluation N 56 56 56 56 56
**. Correlation is significant at the 0.01 level (2-tailed).

The findings show a strong positive correlation between organizational leadership and
effectiveness of M & E system with a correlation coefficient of 0.802. This implies that if
organizations use effective leadership, the level of effectiveness of M & E systems projects
will increase. The findings also show a positive correlation between budgetary allocation to
monitoring and evaluation and effectiveness of M & E with a correlation of 0.836. This implies
that if funds are readily and adequately available, the process of monitoring and evaluation
projects will increase thus contributing to increase in effectiveness of these projects.

36
The study shows a strong positive correlation between stakeholders’ participation and
effectiveness of M & E system with correlation of 0.858. This implies that better enforcement
of stakeholders’ participation within commercial bank of Ethiopia can significantly improve
the effectiveness of M & E. There is also strong positive correlation between Staff capacity in
handling M&E and effectiveness of M & E (.842) which implies that if staff trained on
monitoring and evaluating they contribute to the effectiveness of M&E.

4.8 Summary of findings

This section presents summary of findings of the study in chapter four according to the
objectives: in reference to introductory information or the demographic characteristics of the
respondents the study sought to establish the respondents’ gender, age, level of education, and
duration of service. The findings that there were more men in commercial bank of Ethiopia
project office. From the findings, majority of the respondents, 41% (23), indicated that they
were of age bracket 31-40 years. The respondent’s academic qualification is between BA/BSc
degree and MA/MSc degree. 34% of the respondents have MA/MSc degree and 66% of the
respondents have BA/BSc degree.

In reference to objective one which sought to establish the influence of the competency of staff
handling monitoring and evaluation on effectiveness of M&E of information technology
projects by commercial bank of Ethiopia the findings revealed that a high percentage of the
respondents, 41.1% (23) agreed that the competency of staff handling monitoring and
evaluation determine the effectiveness of monitoring and evaluation of IT projects while 33.9%
(18) of the respondents strongly agree that competency of staff handling M&E monitoring and
evaluation determine the effectiveness of monitoring and evaluation commercial bank of
Ethiopia IT projects.

Based on objective two which sought to identify the influence of budgetary allocation on
effective M&E of commercial bank of Ethiopia IT projects majority of the respondents agreed
with the statement that there is a separate budget allocation for M&E system with a mean score
of 4.18. The respondent also asked whether the bank provides sufficient funds for monitoring
and evaluation activities, the bank ensures there is timely provision of funds allocated are used

37
for M&E activities only most of the respondent agreed with the statement with mean 4.34 and
mean 4.16.
Regarding objective three which sought to identify the influence of stakeholder participation
in monitoring and evaluation on effectiveness of M&E of commercial bank of Ethiopia IT
projects a high percentage of the respondents, 48.2% (27) agreed that the stakeholder
participation in monitoring and evaluation determine the effectiveness of monitoring and
evaluation of IT projects while 32.1% (18) of the respondents strongly agree that stakeholder
participation in monitoring and evaluation determine the effectiveness of monitoring and
evaluation commercial bank of Ethiopia IT projects.

The study found that the level of commitment of top leadership in the organization determines
to a great extent the effectiveness of monitoring and evaluation system for projects. A high
percentage of the respondents, 50% (29) agreed to a very great extent while 32.1% 1(8) of the
respondents agreed to a great extent. Only 4 respondents (7.2%) disagreed that the level of
commitment of top leadership determines the effectiveness of monitoring and evaluation
system for projects. The findings showed a strong positive correlation between organizational
leadership and effectiveness of M & E system with a correlation coefficient of0.802. The study
also found that leaders do clearly communicate M & E results, ensure sufficient resources are
allocated to M & E. The organization’s leadership is critical to achieving effectiveness of M&E
due to the crucial role they play in an organization.

4.9 Discussion of the Findings

The study was concerned with the variables influencing effective M&E of commercial bank of
Ethiopia IT projects namely competence of staff, budgetary allocation, stakeholders
‘participation and organizational leadership. Data was collected and analyzed in a manner that
captured the variables in varying degree of outcomes. The following paragraph will present the
relationship of these findings with the underlying literature reviewed in chapter two of this
study.

The study recognized competence of staff as a factor influence effective M&E of commercial
bank of Ethiopia IT projects. UNAIDS (2008) notes that, not only is it necessary to have
dedicated and adequate numbers of M&E staff, it is essential for this staff to have the right
skills for the work while Nabris (2000), avers that monitoring and evaluation carried out by

38
untrained and inexperienced people is bound to be time consuming, costly and the results
generated could be impractical and irrelevant.
The current practice was in agreement the view by Mukhererjee (2013) who states that to meet
capacity needs there should be hiring of right people who are already trained, training your
staff, hiring external consultants for focused inputs and also ensure the capacity of good quality
through removing disincentives and introducing incentives for learning, keeping track of staff
performance through regular evaluation, striving for continuity of staff and finding highly
qualified person to coordinate.

The study found a positive relationship between the budgetary allocation and effectiveness of
M& E. It found that adequate funds results to better actions during monitoring and evaluation
of projects thus resulting to better M & E. This was in agreement with James (2011) on
programme evaluation standards that evaluation planning budget could certainly be more
carefully estimated and actual expenditure on the evaluation more carefully monitored. The
findings showed that M&E has separate budgetary allocation in agreement with Chaplowe
(2018) and the funds were sufficient to carry out planned activities. The amount allocated was
between5-10% of the projects budget and the funds were used specifically for M&E activities
as Kelly and Magongo (2014) recommends.

The study also found a positive relationship between the stakeholders’ participation and
effectiveness of M & E. It was found out that increased stakeholders’ participation results to
an increase in effectiveness of M & E. This concurs with Patton (2018) who states that
stakeholders’ involvement is paramount for M&E system to be effective. It was found out that
CBE project office adequately involve stakeholders in activities like data collection, designing
and planning of M&E, identification of indicators, and decision making which are very crucial.
Partnering closely with key stakeholders throughout the entire M&E process promotes shared
knowledge creation and learning, helps in transfer of skills, development of capacity and
enhances ownership of results (UNDP, 2012).

The study also found a positive relationship between organization’s leadership and
effectiveness of M & E. It found that an improvement in organizational leadership lead to
effective M& E system. This concurs with World Bank (2011) which states that organizational
leadership is a fundamental factor in the production of M&E results. M&E being a new

39
professional field, organizational leadership is paramount in building an effective M&E human
resource capacity both in quality and quantity (World Bank, 2011).

The findings also indicated that leaders in the bank always and clearly communicate M & E
results. Majority of the respondents also indicated that the management is keen to ensure that
sufficient resources are allocated to M & E. World Bank (2011) notes that an organization’s
management commitment to the implementation of a monitoring and evaluation system is
paramount. They ensure that adequate funds and other resources are set aside for M&E. If there
is no goodwill and support from organization’s management, then the M&E system will poorly
be designed and operated leading to its ineffectiveness and inaccurate findings.

40
 CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
The purpose of this study was to investigate determinants of effective of monitoring and
evaluation of information technology projects by commercial bank of Ethiopia. The results of
the study were presented in the previous chapter. In this chapter, summary of the main findings,
discussion, conclusion and recommendations will be made.

5.2 Conclusion of the study

The following conclusion can be made from the study:

The study sought to establish the influence of competence of staff handling M&E on effective
M&E of commercial bank of Ethiopia IT projects. The findings of this study confirm
competence of staff handling M&E influence the effectiveness of Monitoring and evaluation.

Regarding the second objective which endeavored to determine the influence of budgetary
allocation on effectiveness of M & E system, the study concluded that there is a positive
relationship between the budgetary allocation to M&E and effectiveness of M & E. The
organization provides a separate budgetary allocation to M&E activities and the funds are
sufficient (between 5%-10% of project budget).

The study also wanted to determine the influence of stakeholder participation on effective
M&E of commercial bank of Ethiopia IT projects. Overall finding reveal that stakeholders
participation has significant influence on the effectiveness of M&E.

Finally, the study found out that the level of commitment of top leadership and management in
the organization determines to a great extent the effectiveness of monitoring and evaluation
system for projects. The study revealed that leaders always and clearly communicate M &E
results and also take active part in designing the M & E.
Majority of the respondents also agreed that management ensures sufficient resources are
allocated to M & E. This is in agreement with World Bank (2011) which states that the role
played by the organization leadership dictates the effectiveness of the M&E.

41
5.3 Recommendations
The following are recommendations based on the findings of the study:
1. There is need for training of the staff to equip them with the oversight skills and to be to
understand and trust the M&E process. This would ensure that the M&E process is guided by
relevant skills and technical know-how thus becoming highly effective.
2. There should be proper budgeting practices that recognize the need for sufficient financial
resource for monitoring and evaluation. The proportion budgeted for should be realistic and
based on actual real expenditures. The leaders should continue to demand clear budget
allocation to M&E and follow up on the precise break down of the budget during the M&E
process.
3. The stakeholders need to be sensitized on the need to participate in M&E process.
Appropriate strategies to involve stakeholders should be introduced to ensure that a bigger
proportion of the stakeholders are involved. The stakeholders should be given information
relating to the project to create interest in it.
4. Organization leaders should take active part in designing M & E system and offer timely
support and guidance to projects’ staff and ensure M&E activities are well executed and results
and findings communicated and used in decision making and planning.

5.4 Suggestions for further research

The empirical study has indicated a number of relevant issues that the research project did not
investigate, but which might be important for further research. Further research should be done
on other factors influencing effectiveness of M&E system for projects other than competence
of staff, budgetary allocation, stakeholders’ participation and organizational leadership.

Further this study may be replicated into other banks to enable generalization to be made with
regard to factors influencing effectiveness monitoring and evaluation of information
technology projects by commercial bank of Ethiopia.

42
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 Questionnaire
Addis Ababa University
School of commerce
Department of project management

Dear Respected Participants,

I am a post-graduate student of Addis Ababa University, School of commerce, in the field of Project
Management. As a graduating student, I am conducting research under the topic ‘Factors
influencing effectiveness of monitoring and evaluation: the case of commercial bank of Ethiopia
information technology projects’. This questionnaire aims at establishing; assessment
effectiveness of monitoring and evaluation of IT projects at commercial bank of Ethiopia The
questionnaire is designed to collect data that will help achieve the objectives of this study. I am
kindly requesting you to participate in this study by responding to all the questions as candidly
and precisely as possible. Your honesty and co-operation in responding to the questions will
highly be appreciated. All information provided will be treated with utmost confidentiality and
will be used purely for academic purposes.

Best Regards,

Put in the box

5 – Strongly agree 4 – Agree 3 - Neutral 2 - Disagree 1 – Strongly disagree
Part. A: Factors affecting Effectiveness of Monitoring and Evaluation of 1 2 3 4 5
IT Projects.
I. Budget allocation
1. The bank provides sufficient funds for monitoring and evaluation activities
(about 5%-10% of projects budget)
2, There is a separate budget allocation for M&E
3, The bank ensures there is timely provision of funds allocated are used for
M&E activities only
II. Stakeholder Participation
1, Stakeholders are adequately involved in designing and planning of M&E
activities
2, Stakeholders are involved in M&E decision making process
3, Stakeholders are involved in M&E data collection process
4, the bank involves stakeholders in identification of indicators
5.Overall Stakeholder Participation in M&E influence the effectiveness of
M&E of IT projects

46
III. Organization’s Leadership
1. The organization uses M&E findings in decision making
2. Leaders always and clearly communicate M&E results
3. Management ensures sufficient resources are allocated to M&E
Overall commitment of organization leadership/management influences the
effectiveness of monitoring and evaluation system for projects?
IV. Competence of staff handling M&E
1. Staff has a Technical skills needed to conduct M&E
2. Staff has got appropriate and timely training needed to conduct M&E
3.Overall Competence of staff handling M&E influence effectiveness of
monitoring and evaluation of IT projects
V. Effectiveness of M&E System
1. Results and findings from M&E are relevant and useful
2. The M&E activities are carried out within schedule
3. The cost of M&E activities is always within the budget
4. The M&E objectives are largely achieved
5.Overall monitoring and evaluation of banks IT project is effective

47