STRATEGY PRACTICES AND PERFORMANCE OF KENYA UNION OF SAVINGS AND CREDIT CO-OPERATIVES LIMITED
Aullah Odhiambo Collins Willis - Master of Business Administration (Strategic Management), Kenyatta University, Kenya
Dr. Lucy Kavindah - Department of Business Administration, School of Business, Kenyatta University, Kenya
ABSTRACT
The purpose of this study was to investigate the relationship between strategic practices and performance of KUSCCO. While the purpose of KUSCCO is to mobilize SACCOs to become affiliated to it hence the increase in saving portfolios from Ksh. 1.4B to Ksh. 2.0B but only 1.27 billion was achieved at the end of that Strategic Plan 2009-2013 period; this failure to build enough SACCO saving portfolio, through recruitment of more SACCOs, is attributable to weak or poor or inappropriate strategic practices. The study was aimed at achieving four specific objectives; first to determine the influence of resource allocation on the performance of KUSCCO; second, to assess the effect of performance targets on performance of KUSCCO; third, to assess the influence of strategy communication on performance of KUSCCO and lastly, to establish the effect of strategy supervision on performance of KUSCCO. This study used descriptive research methodology. The target population was the 138KUSCCO staff comprising of Senior Management Team, Middle Management and Lower-level Management and a sample size 41 respondents was used. This study was guided by stratified random sampling technique and a structured questionnaire was used for data collection. The questionnaires were administered to the respondents through the drop and the pick method and once collected the data analyzed using both descriptive and inferential and also, Microsoft Excel to calculate the frequency percentages, mean score as a measure of central tendency and standard deviation as a measure of data dispersion. Statistical Package for Social Science (SPSS) was used to perform correlation analysis that was used to establish the degree of relationship between respondents' opinion on the four research objectives. The study realized that strategy communication influenced the performance of KUSCCO to a greater extent followed by performance target realization, resource allocation, and strategy supervision respectively. The results of the study indicated thatresource allocation, performance targets, strategy communication and strategy supervision practices had a positive and significant influence on the performance. The study concluded that resource allocation, performance targets, strategy communication and strategy supervision practices influence the performance of KUSCCO. The study therefore recommends that the Union should have a robust strategy communication system to enable communicate and give feedback on strategy implementation, source for more resources to facilitate the process and have a financial management system to manage the available resources well, get the right human resources to supervise the process and induct them to ensure they have the right skills and also set realistic and realizable targets which are followed up to ensure they are well implemented.
