Factors affecting employees performance in the new SACCO regulatory regime- a study of Meru County
Ndengwa, Joseph Wachira
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In the advent of the new Sacco regulations and the establishment and commencement of the operations of SASRA, human resources management issues are a major concern to Saccos if they are to fit into a regulated regime. The new regulations are aimed at enhancing efficiency, growth, confidence and stability of Saccos. The reports that have to be prepared where none were required in the past, the standards set for such reports which are based on IFRS, strict deadlines and penalties for failure to meet the deadlines requires enhanced performance from the Sacco employees. Saccos in Kenya especially rural Saccos inherited human resource practices that do not conform to internationally accepted standards to which, the new regulations will benchmark in recruitment and selection, compensation and reward management, training and development as well as performance management. This research shall seek to find out how Saccos currently carry out their human resources management processes, establish the requirements by the regulations. The research adopted a descriptive survey research design that describes the existing conditions and attitudes. The target population for this study was the six SASRA licensed deposit taking Saccos in Meru County with the respondents being the chief executive officers of the licensed Saccos. Primary data was collected by use of self administered questionnaires with close ended questions which were availed and retrieved using drop and pick method. The completed questionnaires were reviewed for completeness and validity, coded and keyed into the computer for analysis using SPSS. The study concludes that Sacco's did not have a performance management system and that all employees were encouraged to draw their personal development plans. Additionally, the study concludes that the Saccos had a recruitment and selection policy and that the Saccos advertised locally for vacant positions. The study also concludes that the Saccos were considered highly as an employer by other people and that commitment of workers was reduced by a wrong recruitment decision, The study recommends that Saccos should adopt good performance management system as this will aid in achieving long-term mutual benefits in terms of quality, efficiency, performance, opportunities, and competence. In addition, upon adopting a good performance management system good resources allocation and utilisation mechanisms will be put in place which will greatly aid in curbing corruption within the Saccos as well as ensuring that the employees adequately and effectively perform their tasks and duties.