The Impact of Training on Organisational Performance: Empirical Evidence from Savings and Credit Co-operative Societies (SACCOS) in Tanzania

Abstract

Organizations strive to achieve superior performance in the competitive business environment they operate in. Savings and Credit Co-operative Societies (SACCOS), like many other organisations, have been using various strategies and practices to make sure they meet their stakeholders’ expectations by attaining desirable performance. Unexpectedly, there are SACCOS in Tanzania have not been well performing despite various inputs invested in these organizations. Empirical evidence shows that training is one of human resource management functions that influences organizational performance. However, there is no sufficient empirical evidence to validate this claim in SACCOS in the Tanzania’s context. This study was conducted to fill this research gap. Three sub-variables of training namely training needs assessment, training methods and training content were examined to detect how they relate with SACCOS performance. Resource based theory was used to guide the study. The study adopted a quantitative approach through a simple random sampling technique. Self-administered questionnaires were used to collect data from 321 HR Managers (or their equivalent) in Tanzania SACCOS with specific focus in Dares Salaam region. Descriptive (mean, standard deviations and frequencies) and inferential statistics (correlation & regression) were used. The study found a significant positive relationship between training needs assessment and SACCOS performance. A positive and significant relationship between training methods and SACCOS performance was also detected. Moreover, the study found a positive significant relationship between training content and SACCOS performance (. It is thus generally concluded that training is an effective determinant of SACCOS performance in Tanzania. The study recommends provision of training among SACCOS employees that considers training needs assessment and uses appropriate training methods with relevant training content to be provided to enhance organizational performance.