15 Justification of the study It envisaged that this study will help the

15 justification of the study it envisaged that this

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1.5 Justification of the study It envisaged that this study will help the managers and employee at cooperative societies to understand the importance and effects of job description on performance. The findings of the study will enable the management of societies in their workplace. It will also be used to improve performance 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 24 respondents and sample 100% of them by the use of census technique. Data collection instruments include questionnaires. Data will be analyzed through the use of qualitative technique 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 anticipated problems related to the respondent failure to fully cooperate in completing and returning the questionnaire as required. The questionnaire contained quite a number of statements and the respondents might not have enough time and relevant knowledge to go through all of them. The selected sample size might be small and cannot be used to generalize performance in the whole country and the culture in cooperative societies in Kericho County can be different from other banks. 7
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CHAPTER TWO 2.1 Introduction This chapter reviews the previous studies on the related field, acknowledges the contribution made by the scholar’s publication (seminar papers, conference, identifiers the gaps and provides the way forward. A critical review is done to identify gaps, thereafter a summary is made to show how unique the study is the literature review has been categorized under various sub-headings. 2.2 Theoretical framework Agency theory revolves around an individual referred to as the principal who hires another individual (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. The entities could be: suppliers; creditors; employees and the government among others. This brings about an agency relationship between the Sacco and the entities . Agency theory is used to understand the relationships between agents and principals. The agent represents the principal in a particular business transaction and is expected to represent the best interests of the principal without regard for self-interest . The different interests of principals and agents may become a source of conflict, as some agents may not perfectly act in the principal's best interests. The resulting miscommunication and disagreement may result in various problems within companies. Incompatible desires may drive a wedge between each stakeholder and cause inefficiencies and financial losses. This leads to the principal-agent problem .
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