How does microfinance employee performance impact institutional success? This study uncovers surprising insights from Gulu District, revealing that while Balanced Scorecard principles were utilized, significant gaps in learning and innovation hindered optimal service delivery, reshaping our understanding of microfinance effectiveness.
4.3 – Employees background information
The researcher got responses from the employees, with specific intentions of getting their background information, which included the number of employees in the MFIs, educational statuses, positions of responsibilities, and their lengths of services with the MFIs.
According to the study, a sample size of forty (40) employees was planned. Out of which five (5) respondents were expected from each of the eight selected MFIs. However, this number was not realised.
The actual number of questionnaires received back from the eight selected MFIs in relation to the targeted sample size was presented in Table 12.
Table 12 – Organisations and the Employee Respondents
| Table 12 – Organisations and the Employee Respondents | |
|---|---|
| Parameter/Criteria | Description/Value |
| Targeted sample size | 40 employees |
| Actual questionnaires received | 21 questionnaires |
Source: Research data August 2007
The researcher was able to get back only 21 questionnaires from the employee respondents of the eight selected MFIs. This small number was due to the fact that, some MFIs restricted the number of their staff in responding to the questionnaires.
For example, Gulu district elders’ cooperative society allowed only one staff member to fill the questionnaire. Supervisors or managers from some of the MFIs were uncooperative.
Further, some respondents who received the questionnaires, decided to keep them, despite several attempts to retrieve the questionnaires from them.
4.3.1 – Number of employees in the MFIs
The findings on the number of employees employed by the selected MFIs are presented in Figure 13. The figure shows that 85.7% of the respondents indicated that, the number of staff in the MFIs was in the range of 0 – 5, 9.5% indicated that their MFI consisted of over 20 employees and, 4.8% of the respondents indicated that the number of employees in the MFI was between 6 and 10.
This result was significant since it agreed with the sample size discussed in Chapter 3. For good performance, any MFI must have a supervisor, a loan officer, an accountant and a secretary, and other additional staffs if required.
Figure 13 – Number of employees in the MFIs
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Source: Research data August 2007
4.3.2 – Employee educational status
The findings on the employees educational status was presented in Figure 14. The figure shows that 33.3% of the staff had diplomas, 28.6% attained University education, 19.0% had certificates from tertiary institutions, 14.3% attained secondary level of education and only 4.8% attained primary level.
Figure 14 – Formal education
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Source: Research data August 2007
The result showed a big contrast with the results presented for the educational level of the customers. The employees had a high percentage of those who attained diplomas and University degrees, whereas the customers had the lowest percentage.
With a high level of educational background, the staffs are expected to have a high level of competence. Since an educated human resource is a crucial factor in determining the quality of performance measurement and service delivery.
4.3.3 – Employees positions of responsibilities
The result for the data collected on employees’ positions of responsibilities was presented in Figure 15, which shows that the highest percentage of 28.6% were the loan officers, 23.8% were for both managers and cashiers, and 9.5% were supervisors and secretaries, and 4.8% other staff.
Figure 15 – Position of responsibility
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Source: Research data August 2007
Getting responses from all categories of staffs was significant for this study, since different views from all categories of staff, avoided bias. The loan officers had the highest percentage because they are the ones who interacted directly with the customers at all stages.
4.3.4 – Employee length of service with the Organisation
The data collected to find out the number of years the respondents had been with the MFIs, was presented in Figure 16.
Figure 16 – Length with the organisation
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Source: Research data August 2007
The result showed that 66.7% of the respondents had been with the MFIs for a period between 0 and 3 years, 28.6% had been with the MFIs for a period between 4 and 7 years and, 4.7% served the MFIs for a period between 8 and 10 years.
This result came as expected since most MFIs in Gulu district have just been recently established, after over 20 years of insurgency. The environment at that period of turmoil was not conducive for such an industry to be operational.
The period an employee had been with an organisation, is important when assessing the performance of the organisation. Employees who have stayed longer in the organisation would have a better view about the organisation, compared to those who have not been with the organisation for long.
4.4 – Status of the Microfinance Institutions
The data on the status of the MFIs was presented in Figure 17, and the figure reveals that 85.7% of the selected MFIs operating in the district are SACCOs, and 14.3% are private companies.
Figure 17 – Status of organization
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Source: Research data August 2007
This result is not surprising because, a number of SACCOs are being formed every other day and the government is also encouraging people to start up SACCOs, in the program called prosperity for all. According to the arrangement, PBU is to give supplementary funds to these SACCOs, to help members get access to loans.
The second part of this sub section was to establish how the MFIs, got their funds for running the organisations, in terms of giving out loans and other operational costs. The results are presented in Figure 18.
The result showed that 90.5% of the MFIs got their funding through Loans from other banks, donors, and shareholders, and 9.5% from the members deposits.
Figure 18 – Sources of funds for the MFIs
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Source: Research data August 2007
This result is significant in the sense that, if an MFI does not have many members and is not exposed to the donors and other banks, then its survival is always at stake. The MFIs shall not have sufficient funds to give out loans to the customers, and at the same time meet the operational and other overhead costs.
Frequently Asked Questions
What is the targeted sample size of employees in the study?
The targeted sample size was 40 employees.
What percentage of employees in the MFIs had diplomas?
33.3% of the staff had diplomas.
Which positions had the highest percentage of employees in the MFIs?
The highest percentage of employees were loan officers, at 28.6%.