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Human capital management in rwanda: challenges and prospects for microfinance institutions

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par Jean Paul SAFARI
Maastricht School of Management  - MBA  2010
  

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4.3.6. Date of employment (with current employer)

Table 4.7: Date of employment with current employer

Date

DUTERIMBERE IMF SA

IMF UNGUKA SA

2004

1

5

0

0

2005

0

0

1

5

2006

0

0

3

15

2007

5

25

7

35

2008

3

15

4

20

2009

4

20

3

15

2010

7

35

2

10

Total

20

100%

20

100%

Source: Primary data

At DUTERIMBERE IMF SA, 5% came in 2004, 25% came in 2007, 15% came in 2008, 20% in 2009 while 35% came in 2010. In other words only 5% started with the institution in 2004. The organization has, indeed been hiring as it grows.

At IMF UNGUKA SA, we have the pattern that follows: 5% in 2005, 15% in 2006, 35% in 2007, 20% in 2008, 15% in 2009 and 10% in 2010. Only 5% started with the organization, like in the case of the competitor, the organization has been hiring as it grows.

UNGUKA could not hire in 2004 as it was non - existing. Microfinance organizations hire as they grow. However, reading from these statistics, in both cases, employees who started with the organizations are very few. It might mean the organization had need for few employees or it started with many people who dropped along the way.

4.3.7. Number of posts occupied

Table 4.8: Number of posts occupied by respondents

Number of posts

DUTERIMBERE IMF SA

IMF UNGUKA SA

1

16

80

4

20

2

4

20

6

30

3

0

0

7

35

4

0

0

2

10

6

0

0

1

5

Total

20

100

20

100%

Source: Primary data

At DUTERIMBERE IMF SA, 80% occupied just 1 position while 20% occupied 2 positions. In a sharp contrast, IMF UNGUKA SA saw many employees rotating from position to position. 20% occupied just 1 position, 30% occupied 2 positions, 35% occupied 3 positions, and 10% occupied 4 positions while 5% occupied 6 positions.

It can be deduced that there is little or at least non - existing internal mobility in DUTERIMBERE while it is a way of doing business at UNGUKA. Failure to rotate employees in organization prevents a number of advantages.

As a result, employees who perform the same job each day without variation are likely to experience greater feelings of fatigue, apathy, boredom, and carelessness. This leads to decreased productivity, increased absenteeism, and increased likelihood of turnover. Employees are dissatisfied. They feel de - motivated, unhappy, and irritated, which are detrimental to productivity and above all, loss of organizational commitment. That means that microfinance institutions that do not foster employees' internal mobility / job rotation face more retention challenges.

4.3.7. How do MFIs recruit employees?

At DUTERIMBERE IMF SA, no case was found where the institution took a former intern or at least the must have heard of an employment opportunity for him / her to apply and compete; it was the same scenario at IMF UNGUKA SA. Both institutions advertise. In DUTERIMBERE 65% had seen a job advert while it is 75% in UNGUKA.

Their way of advertising was different, however, DUTERIMBERE advertises via newspapers and its website while UNGUKA just posts adverts on all its branches. While UNGUKA does not report any case where its adverts were not responded to, its adverts are likely to be seen by only its clients or its clients' relatives; who may explain the 15% had heard from friends in institutions.

Regarding headhunting, it never happened in DUTERIMBERE. It happened once in UNGUKA. The employee who skills were headhunted was interviewed and had this to say «management contacted me, we negotiated, and I gave them my proposal. I am satisfied since I believe they did their best to fix my salary as high as they could as far as their capacity is concerned4»

4 The employee who was headhunted is a Director of ICT. He was hired when the organization was going to computerize its operations.

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