Performance management practices and customer service in savings and credit cooperatives; a case of Kabwoy a sacco, Hoima district

Abstract

This study was carried out in order to examine the relationship between performance management practices and customer service in Savings and Credit Cooperatives (SACCOs) in Kabwoya Sub County, Hoima District using Kabwoya SACCO as a case study. The study objectively sought: to assess the effect of performance management practices on staff commitment to customer service in SACCOs, to examine the effect of performance management practices on customer expectations and to establish the relationship between performance management practices and customer retention in SACCO. The study used a cross-sectional research design. Data was collected using questionnaires, interviews and FGDs. A simple random sampling design was used to select respondents from the clients and purposive sampling was used to select staff respondents. The study covered l 00 respondents all had information on performance management practices and customer service in SACCO. Data analysis was done using a computer package of SPSS. The findings revealed that; performance management practices used by these SACCOs have positively impacted on customer expectations enterprises in terms of profitability, productivity and business sustainability. However, some respondents from Kabwoya SACCO is not in position to increase on their savings level which has made them to entirely depend on loans for business financing as evidenced from Pearson co1:relation coefficient of r=-0.603 . The results indicated that there is a significant positive relationship between performance management practices and staff commitment. It was concluded that; there is a significant positive relationship between PMPs and staff commitment which implied that when SACCOs possess the ability to acquire knowledge, disseminate information, and interpret information will result into positive effect on the performance of SACCOs. Also, it was concluded that; there is a significant and positive relationship between PMPs and customer expectations as revealed by an indication that the more the SACCOs were willing and prepared to avail service to borrowers, the more governance structures, would improve. Also there is a significant and positive relationship between PMPs and customer retention, the higher the level of innovation among employees the likelihood that SACCOs will improve. The study recommended that; for SACCOs to ensure employee commitment, customer expectation, satisfaction and retention the following must be done; participatory planning should be emphasized, regular monitoring of activities and feedback on findings should be provided to all stakeholders, then equitable rewarding should be timely and regularly done, since it leads to commitment among various stakeholders hence good performance by the SACCO.