Training and Empowerment Practices as a Source of Competitive Advantage in Service Delivery and Organizational Performance of Savings and Credit Cooperatives in Nakuru County

Abstract

Firms including savings and credit cooperatives (Sacco’s) are facing, intense competition from globally established firms which offer similar functions and services. Most of these organizations have made enormous improvement (s) and has radically made drastic changes in their operations. To achieve success and performance; employee empowerment and training have become key cornerstone of success; the human element in the organization contributes significantly to the success of these organizations people skills, knowledge and behaviour need be factored in any organizations change structures and management. Employee empowerment is a strategy and philosophy which facilities effective employee contributions towards organizational goals, training programmes contribute towards skill improvement and knowledge development. The objective of the study was to establish the effect of employee empowerment and training as a source of sustainable competitive advantage of in service delivery and performance, a survey of Sacco’s in Nakuru County, Kenya. The study took descriptive survey research and a census approach as the population of registered Sacco’s were nineteen (19) in number. The response rate registered a 74%. The study findings indicated that most Sacco’s had policies and programmes on empowerment and training, universally the results of research indicated that empowerment consisted of four dimensions, making, competence, self-determination and impact. The result indicated that empowerment and training greatly increased employee morale and skills as well as job autonomy in decision making. The study noted that employee commitment increased significantly and contributed to effective change management practices. The study noted that majority of Sacco’s had similar training focus and programmes notable ones being, employee induction programs, orientation on the job, apprenticeship training internship and refresher courses and job rotation. On job training was quite popular for lower and middle level staff categories, while senior staff benefited from advanced training in diverse management functions and conference attendances. The study noted that performance parameters like increase of Sacco operations, increased customer base, increase on revenue and higher level of customer reputation was registered. The study had various limitations of time constraints data confidentiality also featured as a limitation factor. Suggestions for further research included the adaption of a case study approach to understand issues of empowerment at greater depth then a survey of various Sacco’s. There was a significant correlation between the dimensions of empowerment and employee performance.