Selected Factors Influencing Effective Succession Planning in Deposit Taking Savings and Credit Cooperatives in Nyandarua County(A Case Study of Tower Savings and Credit Cooperative- Ol Kalou)

Abstract

SACCOs are a significant sector in today’s economy due to their ability to mobilize savings and give credit for investment thereby improving people’s livelihood. SACCOs have been noted to contribute over 45percent GDP and it is estimated that at least one out of every two Kenyans directly or indirectly derives his/her livelihood from these kinds of cooperatives. SACCOs play an important role in wealth creation, food security, generation of employment and therefore alleviating poverty. The purpose of this study was to analyse selected factors that influence effective succession planning in SACCOs.  The specific objective was to evaluate the influence of top management on effective succession planning in SACCOs in Nyandarua County. The study was based on both the resource based theory, the leadership succession theory and game theory. The study adopted a descriptive research design. The population of the study was 84 respondents who are board members and members of staff of Tower SACCO. The study adopted a census whereby data was obtained from every member of the population because the population was small. A structured questionnaire was the primary data collection instrument. Content validity was used to measure the validity of the instrument. It relied on the knowledge of the experts who are familiar with the subject matter being measured. Cronbach alpha was used to measure the reliability of the questionnaire by providing the internal consistency during a pilot study done to 10 staff at Nyala SACCO, Nyahururu. The study attained a value of 0.734 which met the threshold of 0.70.  The regression model was used to analyse the data obtained to investigate the relationship between the variables. The study revealed that SACCO  top management support influenced effective succession planning in organisations thus the null hypothesis was rejected.  The study recommends that SACCO management should sustain job rotation so as to enhance skills acquisition for employees. It also recommends that SACCO top management should be at the forefront in providing the necessary support and impetus for succession planning and should encourage open discussion about succession planning in their regular meeting. The study is significant to various stakeholders in SACCO industry who include policy makers, board of directors, top management and employees of the SACCOs because it has provided them with insight on issues affecting succession.

Keywords: Effective Succession Planning, Top Management