Management composition and financial performance of SACCOs

Abstract

This research is based on the topic; Management composition and financial performance of SACCOs. The researcher therefore aimed at assessing the relationship between management members’ qualifications and the financial performance of SACCOs, the relationship between management members’ experiences and the financial performance of SACCOs and the relationship between management members’ skills and the financial performance of SACCOs. Financial performance of a SACCO greatly relies on its Management composition. The financial performance is determined by the profitability, loan portfolios, quality of services and technology, liquidity (solvency) ratios and the continuity (stability) of the SACCO. Management composition involves qualifications, experiences and skills of the management members which are necessary to decide how departments should interact, how resources should be optimally used, prepare documents and reports, and planning and implementing decisions. Using Rukiga SACCO as a case study, the researcher used both qualitative and quantitative data collection approaches, questionnaire and interviewing methods, primary and secondary data sources and sampling methods to obtain reliable findings. The study found out that with proper management members, Rukiga SACCO has been able to serve members satisfactorily over the last ten years, attributed to its proper management composition and hence recommends that more emphasis be put on this crucial requirement so as to achieve even greater financial performance