Business Management Practices of KTS Savings and Credit Society: A Case Study

Discussion

The main purpose of the analysis is to review the case study of KTS savings and Credit society so that the business management practices of the company are identified. The analysis would be portraying the internal communication pattern for the company and the potential issues which the business faces in managing the operations of the business (Harmon 2019). The operations of the business depend on successful internal communications and this is one of the key areas of operations for the company. The analysis would also be highlighting some recommendations so that the issues of the business operations can be resolved and efficiency can be achieved in the activities of the business.

Background Of The Company

The business of KTS is basically a saving and credit cooperative society (SACCO) which has its operations in Kenya and has an asset base of Kshs 2.4 billion. The company accumulates capital from different members so that the same can be used for a common good (Galbraith 2014). The funds application depends on the board members and it is for such reason that effective communication is essential so that efficiency can be maintained in the operations (Kabui 2016). The business of KTS is engaged in microfinance institution where members come together to contribute for the common good of the business, and it is unique because shareholders are the customers and are also responsible for running the operations of the company.

Issues Faced in Management

The business of KTS is engaged in microfinance operations and lending operations by the discretion of the members. The board members who are also the owners of the business decide in uniformity whether funds are to be applied for a certain purpose or not. Therefore, it is crucial that effective communication takes place between the board members so that activities of the business can be executed in a successful manner (Churk 2015). Some of the issues which can be identified in the overall management for KTS are discussed below in points format:

• The communication style which is followed in KTS is rather open and mostly oral communication is present. However, there is a lack of proper documentation of information which leaves no reference points. In case of any change in the management personnel, the lack of documentation can lead to confusion and delay the flow of operations.
• In addition to style of communication, the business does not have a specific network for communicating with the employees and follows rather a mixed method. Further the case shows that no structure is followed and the chain of command is repetitively violated(Henock 2019). Therefore, such a structure affects the flow of work and also impacts the privacy requirements of the business.
• The business of KTS has been slowly making progress to initiate technological changes and this has attracted resistance from the employees. The management has tried to make the employees adapt to the changes but the progress has been slow. This aspect has impacted the growth and development of the company.

The issues which have been identified above are not only affecting the flow of operations in KTS but also the motivation of the employees which can pose problems in terms of retention of skilled employees in long run. For such a reason, it is imperative that appropriate changes are required to resolve the issues.

Recommendations

The analysis of the case of KTS shows that there is wide scope for improvements and if such improvements are made then efficiency can be achieved. Considering the issues which are identified for the business of KTS, the following recommendations can be provided to the business.

• The board members of KTS need to digitalise the operations and communication pattern for the business and ensure that the same is implemented completely. Application of emails can be used to digitally store information which can be refereed back when required(Galor 2018). The business can use letters for communicating appraisals, salary slips and promotions with the employees. This aspect would ensure that full disclosure policy is maintained and a level of transparency is also achieved.
• The business needs to restructure its hierarchy and set a definite chain of commands so that a sense of direction is achieved and decisions can be taken in a much smoother manner. The restructure of the organizational hierarchy would also improve the communication pattern among the employees (both formal and informal communication)(Njeru 2016). The decisions relating to operations of the business can be taken more swiftly and this would promote efficiency in the operations.
• The employees resistance to changes needs to be handled by the management and the same can be achieved by engaging in regular communication with the employees. The management of KTS needs to reassure the employees that change would be beneficial for the business and for them considering long term operations.

Background Of The Company

The above mentioned recommendations needs to be implemented by the board of KTS so that it can bring about immediate changes in the operations and resolve the issues which is being faced by the company (Onsase et al. 2017). The issues which have been identified in the analysis above can be resolved if the recommendations are implemented.

Conclusion

The above discussion appropriately portrays aspects regarding the internal operations of KTS and also discusses the nature of operations of the business. The analysis further shows a detailed background of the business of KTS and also identifies the key issues which the company is facing. Further the discussion which is presented above show the recommendations which the business can implement so that it can maintain efficiency in the operational process. In an overall basis, it can be said that the issues which are currently prevailing in KTS can be resolved following the recommendations suggested in the analysis.

Reference

Churk, J.P., 2015. Contributions of Savings and Credit Cooperative Society on improving rural livelihood in Makungu ward Iringa, Tanzania.

Galbraith, J.R., 2014. Designing organizations: Strategy, structure, and process at the business unit and enterprise levels. John Wiley & Sons.

Galor, Z., 2018. Saving and Credit Cooperatives: A New Conceptual Approach.

Harmon, P., 2019. Business process change: a business process management guide for managers and process professionals. Morgan Kaufmann.

Henock, M.S., 2019. Financial sustainability and outreach performance of saving and credit cooperatives: The case of Eastern Ethiopia. Asia Pacific Management Review, 24(1), pp.1-9.

Kabui, A.C.W., 2016. KTS Saving and Credit Society: managing communication. Emerald Emerging Markets Case Studies.

Njeru, M.D., 2016. Effect of Liquidity Management on financial performance of Deposit Taking Saving and credit co-operative society in Kenya (Doctoral dissertation, Business Administration (Finance), JKUAT).

Onsase, A., Okioga, C., Okwena, D.K. and Ondieki, A.N., 2017. Assessment of the effects of performance management practices on provision of financial services by savings and credit cooperative societies: A case of Gusii Mwalimu Sacco, Kisii Central District, Kenya.