Employee Dedication and Performance of Deposit-Taking SACCOs in Nairobi, Kenya

Dominic Chungani Muteshi; Wycliffe Muli Maingi; Eglay Tuvula Tsuma

doi:10.51867/ajernet.5.4.66

Authors

Dominic Chungani Muteshi
dmuteshi@igrtc.go.ke
Masinde Muliro University of Science and Technology, Kakamega, Kenya https://orcid.org/0009-0003-0486-9846
Wycliffe Muli Maingi Masinde Muliro University of Science and Technology, Kakamega, Kenya
Eglay Tuvula Tsuma Masinde Muliro University of Science and Technology, Kakamega, Kenya https://orcid.org/0000-0001-6987-9939

Keywords:

Deposit -Taking Saccos, Employee Dedication, Nairobi, Organizational Performance

Abstract

Employees well-being and satisfaction need to be the precedence of any successful organization that is aimed at achieving its objectives and customer satisfaction. Thus, the paper sought to scrutinize the connections among staff dedication and performance of deposit-taking Sacco’s in Nairobi, Kenya. The study adopted a cross-sectional census survey of forty-six (46) deposit -taking Sacco’s in Nairobi. Research data was gathered through a questionnaire in a descriptive design. The study utilized purposive sampling technique for the sample population. Reliability and validity of the variables was tested in a pilot study of three (3) deposit-taking Saccos in western part of Kenya. The data analysis was done by means of descriptive and inferential statistics as reinforced by Statistical Package for Social Sciences (SPSS). The research hypothesis was tested by means of regression analysis. The findings (R²- 0.394; p-value=0.000) indicate that employee dedication has a significant impact on the performance of DT-Saccos in Nairobi, Kenya. The research has shown that staff dedication could pose a positive consequence on organizational performance. The study recommends that the senior managers of DT - Saccos should focus more on promoting labour dedication through effective communication, information sharing, employee participation in decision-making, transparent and accountable management and recognition of sterling personal achievement as they have been identified to affect organizational performance.

Dimensions

REFERENCES

Adrianto, A., & Riyanto, S. (2020). The effect of organizational commitment, employee engagement, and organizational citizenship behavior on employee performance at PT Titan Infra Energy - Head Office. IOSR Journal of Humanities and Social Science, 25(1), 22-31.

Bakker, A. B., Albrecht, S., & Leiter, M. (2011). Key questions regarding work engagement. European Journal of Work and Organizational Psychology, 20, 4-28.https://doi.org/10.1080/1359432X.2010.485352 DOI: https://doi.org/10.1080/1359432X.2010.485352

Balaji, V., & Namasivayam, P. R. (2021). A study on employees' dedication in hotel industries. Webology, 18(5), 459-466.

Bhatnager, J. (2012). Management of innovation: Role of psychological empowerment, work engagement, and turnover intention in the Indian context. The International Journal of Human Resource Management, 23(5), 928-951. https://doi.org/10.1080/09585192.2012.651313 DOI: https://doi.org/10.1080/09585192.2012.651313

Bilal, D. H., Khan, A. A., Khan, K. A., & Shah, D. S. N. (2019). The impact of employee engagement on task performance. Journal of Business and Tourism, 4(2), 135-141.

Bryman, A., & Bell, E. (2011). Business research methods. Oxford University Press.

Cassar, V., & Briner, R. B. (2019). Psychological contract breach and organizational commitment: A study of Indian professionals. International Journal of Human Resource Management, 22(3), 1056-1077.

Cheche, S. G., Muathe, S. M. A., & Maina, S. M. (2017). Employee engagement, organizational commitment, and performance of selected state corporations in Kenya. European Scientific Journal, 13(31), 317-327. https://doi.org/10.19044/esj.2017.v13n31p317 DOI: https://doi.org/10.19044/esj.2017.v13n31p317

Eresia-Eke, C., Ndlovu, O., & Nyanga, T. (2023). The role of dimensions of job engagement in organizational performance. Prizren Social Science Journal, 7(1), 53-65. https://doi.org/10.32936/pssj.v7i1.397 DOI: https://doi.org/10.32936/pssj.v7i1.397

Githinji, J. W., & Muli, J. (2018). Employee engagement strategies and employee performance of Air Kenya Limited. International Academic Journal of Human Resource and Business Administration, 3(4), 397-412.

Hembadoon, D., Mnena, Y. H., Abdullahi, A. I., & Tersoo, K. (2022). Employee engagement and performance of Mikap Nigeria Limited, Makurdi. Journal of Management and Contemporary Studies, 63-75.

Jemesunde, L., & Ng'eno, W. (2022). Effects of employee job commitment on organizational performance in Kenya: A case of Huduma Centre - Baringo. East African Journal of Interdisciplinary Studies, 5(1), 161-169. https://doi.org/10.37284/eajis.5.1.762 DOI: https://doi.org/10.37284/eajis.5.1.762

Kaplan, R., & Norton, D. (1992). The balanced scorecard measures that drive performance. Harvard Business Review, 79.

Keith, T. Z. (2019). Multiple regression and beyond: An introduction to multiple regression and structural equation modeling. Routledge Press.

https://doi.org/10.4324/9781315162348 DOI: https://doi.org/10.4324/9781315162348

Khan, W. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692-724. https://doi.org/10.2307/256287 DOI: https://doi.org/10.2307/256287

Koech, C. J. S., & Cheboi, J. (2018). An empirical analysis of employee engagement on employee performance in technical institutions in Kenya. International Journal of Advances in Management and Economics, 7(1), 36-46. https://doi.org/10.31270/IJAME/07/01/2018/04 DOI: https://doi.org/10.31270/IJAME/07/01/2018/04

Kothari, C. R. (2011). Research methodology: Methods and techniques (2nd ed.). New Age International Publishers.

Likert, R. L. (1961). The human organization. McGraw-Hill.

Maina, P. M., & Makokha, E. N. (2020). Determinants of employee commitment on organizational performance (National Government Administration) in Kiambaa Sub-County in Kenya. International Journal of Recent Research in Commerce Economics and Management, 7(2), 66-79.

Maisyuri, R. S. I., & Ariyanto, E. (2021). The effect of vigor, dedication, and absorption on employee performance at PT Mandiri Utama Finance. Danasti International Journal of Management Science, 2(4), 689-672. https://doi.org/10.31933/dijms.v2i4.819 DOI: https://doi.org/10.31933/dijms.v2i4.819

Makhanu, R., & Mukanzi, C. (2018). Influence of physical employee engagement on job performance in the civil service: A case of Kakamega Regional Headquarters, Kenya. The Strategic Journal of Business & Change Management, 5(4), 1223-1238. https://doi.org/10.61426/sjbcm.v5i4.951 DOI: https://doi.org/10.61426/sjbcm.v5i4.951

Mudany, J. O., Awuor, E., Aosa, E., & Ogutu, M. (2021). Influence of staff motivation on the relationship between employee engagement and employee performance at Kenya Electricity Generating Company (KenGen). African Journal of Emerging Issues, 3(9), 49-69.

Mugenda, A. G. (2011). Social science research: Theory and principles. Applied Research Training Services.

Mugenda, A. G., & Mugenda, O. M. (2013). Research methods dictionary. Applied Research Training Services.

Mutiria, E. N., Ngugi, K., & Senaji, T. (2022). Influence of reward system on performance of commercial state corporations in Kenya. Reviewed Journal International of Business Management, 3(1), 101-109. https://doi.org/10.61426/business.v3i1.42 DOI: https://doi.org/10.61426/business.v3i1.42

Mwangi, J. G., & Muturi, W. (2017). Factors affecting financial performance of SACCOs in Kenya. Journal of Finance and Investment Analysis, 6(1), 23-35.

Nevianto, A. R., Heriyanto, D., Setijoutomo, M. A., & Maharani, A. (2021). Factors affecting employee engagement and its relation to employee performance. Journal of Research in Business, Economics, and Education, 3(5), 70-86.

Ngaochai, S., & Amara, V. (2021). The impact of employee engagement on employee performance: A case study of multinational corporations in Thailand. Journal of Asian Finance, Economics and Business, 8(5), 1091-1097.

Nigusea, G. T., & Getachew, H. (2019). The effect of reward system on employee creativity in Oromia Credit and Saving Share Company (OCSSCO), Bale Zone Branch. Journal of Higher Education Service Science and Management, 2(1), 1-18.

Njiru, M. G. (2021). Human resource challenges in deposit-taking SACCOs in Kenya. International Journal of Social Sciences and Entrepreneurship, 4(3), 123-130.

Njuki, R. M., Nzulwa, J., & Kwena, R. (2017). Determinants of employee engagement in the health sector: A case of Nairobi Women's Hospital. The Strategic Journal of Business and Change, 4(23), 418-431.

https://doi.org/10.61426/sjbcm.v4i4.566 DOI: https://doi.org/10.61426/sjbcm.v4i4.566

Ogilo, F. O. (2018). Relationship between employee engagement and organizational performance in deposit-taking SACCOs. Journal of Cooperative Studies, 8(1), 67-79.

Otuohere, J. N. (2021). Employee commitment and organizational performance in hospitality industries in South-East Nigeria. International Journal of Business & Law Research, 9(2), 114-126.

Raza, M., & Nadeem, S. (2019). Drivers of employee engagement and their impact on job satisfaction and turnover intentions. Journal of Managerial Sciences, 12(2), 171-191.

Roseline, M. B., & Konya, K. T. (2019). Employee dedication and performance of transport operators in the marine sector in Port Harcourt, Nigeria. International Journal of Advanced Academic Research in Social and Management Sciences, 5(5), 18-33.

Sarangi, P., & Nayak, B. (2016). Employee engagement and its impact on organizational success - A study in a manufacturing company, India. IOSR Journal of Business and Management, 18(4), 52-57.

SASRA. (2023). The SACCO Supervision Annual Report. An annual statutory report on the operations and performance of deposit-taking SACCO societies in Kenya. SASRA.

Saunders, M., Lewis, P., & Thornhill, A. (2019). Business research methods (8th ed.). Pearson Education.

Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relationship with burnout and engagement: A multi-sample study. Journal of Organizational Behavior, 25(3), 293-315. https://doi.org/10.1002/job.248 DOI: https://doi.org/10.1002/job.248

Stackhouse, L. E., Zaman, F. M., & Turner, K. W. (2022). Effect of employee commitment on organizational performance: A case of textile firms in Sweden. Journal of Human Resource & Leadership, 6(2), 1-10. https://doi.org/10.53819/81018102t5074 DOI: https://doi.org/10.53819/81018102t5074

Ulabor, E. A., & Bosede, A. I. (2019). Employee dedication and service delivery in the Nigeria public sector. The Nigerian Journal of Management Research, 11(2), 1-12.

Wang, M., & Hsieh, J. (2013). Employees' work-life balance. International Journal of Human Resource Management, 25(2), 57-75.

Wanjiru, P.N. & Jagongo, A. (2022). Liquidity Risk and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Kenya. International Journal of Finance and Accounting, 7(1), 1-14. https://doi.org/10.47604/ijfa.1465 DOI: https://doi.org/10.47604/ijfa.1465

Waweru, N. M., & Kalani, V. M. (2016). Leadership and organizational culture in financial institutions: Impacts on employee commitment. African Journal of Business Management, 10(4), 122-130.