HUMAN RESOURCE FACTORS AFFECTING SERVICE DELIVERY IN MICROFINANCE INSTITUTIONS IN KENYA: A CASE STUDY OF FAULU BANK, THIKA BRANCH
Abstract
The study comprises of a representative section of the Kenya Microfinance industry operating in the country, taking a case study of Faulu Bank. Annual Report on the Microfinance sector in Kenya, (2012) Identified and analyzed existing 29 MFIs, DTMs and Banks. The purpose of the study was to investigate the factors affecting service delivery of Faulu Deposit-Taking Microfinance institutions in Thika branch, Kenya. Among the factors were Leadership behaviors, Organization commitment, Employee engagement and Training and Development. The study was prompted by reports of customer complaints and customer switching leading less active borrowers as well as consumers having multiple bank accounts. The specific objectives were; to determine the influence or organization commitment on service delivery, to examine the influence of leadership behavior on service delivery, to investigate the influence of training and development practices on service delivery, and lastly to examine the influence of employee engagement on service deliver in Faulu Bank, Thika branch, Kenya. The study covers Faulu Bank, Thika branch, Kenya. Primary data was collected using structured questionnaires. The study adapted to a case study research which was quantitative and qualitative in nature. It involved descriptive, inferential (Pearson correlation test) and analytical research designs. The Pearson’s correlation test showed a significant correlation between the study variables. The study sample comprised of 40 employees who were selected through purposive and stratified sampling techniques respectively. The data was tested for reliability, analyzed using SPSS and results presented based on the study objectives. The findings of the study were; Faulu employees have a low organization commitment which affects service delivery; on employee engagement, employees are not proactive on identifying challenges and accepting changes within the organization which affects service delivery negatively; The leadership of Faulu is supportive but fails to set standard rules and regulation which frustrated employees affecting service delivery; Faulu have training and development policies but they are not properly communicated which affects employees morale thus influencing negatively on their service delivery.
Key Words: Microfinance, Service Delivery, Leadership BehaviourFull Text:
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DOI: http://dx.doi.org/10.61426/sjbcm.v1i2.31
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