LEADERSHIP PRACTICES AND PERFORMANCE OF SACCOS IN GARISSA COUNTY, KENYA
Mohamed Suleiman Mohamed - Masters of Business Administration (Strategic Management), Kenyatta University, Kenya
Shadrack Bett - Lecturer, Business Administration Department, Kenyatta University, Kenya
ABSTRACT
Leadership practice is a key determinant of the success or failure of any organization. Despite all of the headlines about banking profitability, SACCOs and financial institutions still are not making enough return on investment, or the return on equity, that shareholders require. The SACCOs are also not meetings consumer expectations. The aim of this study was to establish the relationship between leadership practices and performance of SACCOs in Kenya. The study was guided by the following objectives; to find out the effect of leadership style, leadership structure, ethical leadership and leadership policies on performance of SACCOs in Kenya. The study was anchored on traits theory, behavioral theory, contingency and situational theories of leadership. The study adopted descriptive survey design. The intention of descriptive research was to gather data at a particular point in time and use it to describe the nature of existing conditions. The target population of 303 consisted of non-management employees in six major SACCOs in Garissa County. Sample design was stratified random sampling technique and a 30% of the total population of 303 which results to 92 respondents was used. Primary data was collected through use of open and closed ended questionnaires. The coefficient of correlation was 0.873 an indication of strong correlation between the variables. Adjusted coefficient of determination R2 was 0.747 an indication that variations in dependent variable can be explained by independent variables. The study concludes that leadership styles positively influenced organizational performance of SACCOs in Garissa County. This was associated to the following factors; SACCOs employed democratic leadership styles, embraced transformational leadership styles and practised transactional leadership styles. Leadership structure significantly influenced organizational performance of Garissa county SACCOs. This was associated by the following factors; SACCOs branches were dependent on head office directives, leadership of SACCOs was centralised and the board guided all operations of the SACCOs. Ethical leadership negatively influenced organizational performance of SACCOs in Garissa County. Leaders took responsibility for the decision made in SACCOs. Leaders respected employees and involved them in decision making policies. Leadership policies positively influenced organizational performance of SACCOs in Garissa county. Pragmatic leadership was employed in SACCOs of Garissa county. The SACCOs embraced conceptual leadership policy and had favourable leadership policies. The study recommends that leadership styles should positively influence organizational performance of SACCOs in Garissa county. SACCOs should employ democratic leadership styles, embrace transformational leadership styles and practise transactional leadership styles. Garissa county SACCOs leaders should embrace changes in technology. SACCO branches should be dependent on head office directives. The leadership of SACCOs in Garissa County ought to be centralised. The board should guide all operations of the SACCOs. Leaders ought to take responsibility for the decision made in SACCO. Leaders ought to respect employees and involve them in decision making policies. Mutual respect among SACCOs management and employees should be enhanced. Pragmatic leadership ought to be employed in SACCOs. SACCOs ought to embrace conceptual leadership policy and had favourable leadership policies. SACCOs leadership need to be open for ideas and criticism and engaged in risk taking leadership policies.
