1.5 Justification of the study It envisaged that this study will help the managers and employee at cooperative societies tounderstand the importance and effects of job description on performance. The findings of thestudy will enable the management of societies in their workplace. It will also be used to improveperformance on productivity of the cooperative societies. 1.6 Scope of the study The research study is limited to cooperative societies in Kericho County. The study targets 24respondents and sample 100% of them by the use of census technique. Data collectioninstruments include questionnaires. Data will be analyzed through the use of qualitativetechnique and later presented in frequency distribution tables. 1.7 Limitations of the study The following problems are anticipated in the course of research. The researcher anticipatedproblems related to the respondent failure to fully cooperate in completing and returning thequestionnaire as required. The questionnaire contained quite a number of statements and therespondents might not have enough time and relevant knowledge to go through all of them. Theselected sample size might be small and cannot be used to generalize performance in the wholecountry and the culture in cooperative societies in Kericho County can be different from otherbanks.7
CHAPTER TWO2.1 Introduction This chapter reviews the previous studies on the related field, acknowledges the contributionmade by the scholar’s publication (seminar papers, conference, identifiers the gaps and providesthe way forward. A critical review is done to identify gaps, thereafter a summary is made to showhow unique the study is the literature review has been categorized under various sub-headings. 2.2 Theoretical frameworkAgency theoryrevolves around an individual referred to as the principal who hires anotherindividual (the agent) And delegates decision making authority to the agent (Jensen & Meckling, 1976). A Sacco, being an artificial person, interacts and enters into contracts with other entities. Theentities could be: suppliers; creditors; employees and the government among others. This bringsabout an agency relationship between the Sacco and the entities.Agency theory is used tounderstand the relationships between agents and principals. The agent represents the principal ina particular business transaction and is expected to represent the best interests of the principalwithout regard for self-interest. The different interests of principals and agents may become asource of conflict, as some agents may not perfectly act in the principal's best interests. Theresulting miscommunication and disagreement may result in various problems within companies.Incompatible desires may drive a wedge between each stakeholder and cause inefficiencies andfinancial losses. This leads to the principal-agent problem.