Influence of communication practices on performance of professional based savings and credit co-operative societies in Nairobi County: A case of Kimisitu SACCO ltd
Professional based Savings and Credit Co-operatives (SACCOS) are integral to the economic development of this country. Unlike other co-operatives societies, professional based Saccos attend to specific staff and professionals such as accountants, nongovernmental organizations staff among others. This study sought to determine whether communication practices employed by professional based savings and credit co-operative societies influence their organization performance. The study was on Kimisitu Sacco Ltd in Nairobi County which caters for professionals from NGOs, international organizations and embassies. The study was guided by four objectives which were to establish the influence of different modes of communication on organization performance of professional based Saccos, to assess the extent in which use of technology in communication influence performance of professional based Saccos in Nairobi County, to determine the relationship of member training on communication and its influence on performance of professional based Saccos and to establish how internal communication procedures influence organizational performance of professional based Saccos. Literature reviewed shows that communication is an important aspect for organization’s performance. It is the lifeblood to any organization. The target population of the study was 5,964 active Kimisitu members. For the purposes of this study, the researcher studied subjects in Nairobi County. Descriptive correlation survey design was employed in this research. Stratified simple sampling technique was used to identify the sample of 400 subjects whereby Nairobi County was divided into four strata. Primary data was collected through two questionnaires one targeting Kimisitu staff and the other targeting the members. Reliability of research instrument was done through test and retest method. Quantitative data was analyzed using descriptive statistics that included determination of mean, frequency and percentage occurrences while qualitative data was analyzed by thematic discussions drawn from research objectives. The study revealed that indeed modes of communication used by these Saccos influenced their organizational performance with 85% of the respondents indicating that they received most communication via email which suited them and hence they were able to make informed decisions on their investments in Kimisitu Sacco Ltd. The study further revealed a relationship between member training and increased organization performance with 92% of the respondents agreeing that training created all rounded members and 74% indicating that training forums increased their product knowledge and uptake. On use of technology in communication, the study 75% of respondents visited the website frequently to seek product information. Lastly the study revealed that internal communication practices contributed to higher performance and profitability as evidenced by a strong mean of 1.6. The study recommended that Kimisitu Sacco should diversify its modes of communication in order to meet member’s needs. The Sacco also ought to adopt an open door policy to enhance employee engagement and enable clear information dissemination within its hierarchy. Lastly the study recommended that the government create exchange programs for Saccos within the industry for benchmarking and learning purposes with an emphasis on communication practices.