Influence of Human Resource Management Practices on Growth of Sacco Societies in Meru County, Kenya

Globally and specifically in Kenya, the Sacco movement has evolved in the past 40 years into a formidable force that has transformed the social and economic well-being of many people. Growth in organizations is important since it contributes to the economic prosperity of any entity. Though growth is considered as top strategic priority in organizations, very few have achieved it and even fewer have been found to sustain it. The study sought to assess the extent to which human resource management practices influences the growth of Sacco Societies in Meru County. The study was guided by the following objectives, to determine the extent to which staffing, reward system, job design, and performance management influences the growth of Sacco societies in Meru County, The research was based on the goal setting theory and expectancy theory. Descriptive research design was used. The study was carried out in Meru County the Eastern Region of Kenya. Ten (10) Sacco societies were considered in the study where 9 of them were used for actual study and one Sacco society was used for piloting. The target population of this study consisted of 122 management team in the 9 Sacco societies that operate in Meru County. Probability sampling was used. A Cochran correction formula was used to obtain the required sample size of 92 in relation to the target population. The close ended questionnaires were used as the research instruments. Descriptive and inferential statistics were used to analyze data. It was found that all the variables significantly influence growth of SACCOs. Based on study findings, the researcher recommends the use of HRM practices for one to achieve growth in organization although other factors contributing to growth should also be considered. Area for Further Research, Since the HRM practices studied contributed to growth on average other factors that contribute to growth should be studied to determine their contribution too.