CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The customer service is a concept that has considered interest and debate in the research literature because of the difficulties aroused in defining it and measuring it will no overrule consensus merging on. Researcher has shown that high quality services contribute significantly to organizational performance and profitability. Customer service is all about ensuring that customers get what they want at the right time. Organizational performance is the filling or attitude of a customer towards a product or services offer it has been used in term of satisfaction service on organizational performance and quality services are often treated together as functions of customer perception and expectation.

Customer performance is determine by defining the different aspect of customer services practice, their importance to the institute problems associated with the provision of member service and how it can be done to improve on the member service.

Again, if the service offers to members are up to the members’ expectation they will become dissatisfied and may transfer to other financial institutions that offer good quality service. In this case, there may be rivalry amongst credit unions to offer better and quality service to members so as to maintain them. This project seeks to find out the impact of customer services on organizational performance, some of the reasons of member’s dissatisfaction, include high interest rate on loan, low interest rate on saving, charges levied on small amount of money on the saving without notification, only one source of power supply and closing time on Saturday is too short. Thus if an institution does not perform well by satisfying their members with good services membership will be increasing at a decreasing rate. So it is preferred for an institution to provide its members with a quality product rather than to go in for more members which they will not be able to provide with services that will not be to the interest of members services on organizational performance. Financial institutions should be aware that there exists a reciprocal relationship between member’s satisfaction and organizational performance.

1.2 Problem Statement

It is true that the growth of any business lies in the hands of the customers. Therefore, for any business to succeed, it must provide the customers with the best they need and treat them with care so that they would be satisfied with the products or service with the organization.

With the case of financial institution especially credit unions, just like banks, it has been noticed that members/customers leave from one credit union to another and form one bank to another. Isn’t that these financial expectations? Thus, there is a need to improve on the services offered to members and to make them to become loyal to the institution. It is therefore necessary to critical analyses the impact of customer service on organizational performance.

1.3 Research Questions

The following questions guided the researcher throughout the study:

1. What is the impacts of member service on organizational performance?
2. What are the different aspects of customer service practices?
3. What is the importance of customer service to the organization?
4. What are the problems associated with the provision of member services?
5. What can be done to improve on the member service?

1.4 Objectives of the Study

The overall goal of the current study is to evaluate the impact of members’ service on organizational performance of HOCCUL. The specific objectives of this study are as follows:

1. To assess the impact of member’s service on HOCCUL.
2. To identify different aspects of good customer services practices.
3. To examine the problems associated with the provision of customer service.
4. To examine the importance of member’s service in an organization
5. To make appropriate recommendations

1.4 Hypothesis

HO: Members/customer service does not have any impact on organizational performance.

HI: Members/customer service does have an impact on organizational performance.

1.5 Significance of the Study

This piece of work is of great importance to the researcher, who is the first to benefit from the discoveries.it will be of personal satisfaction to her and give her a sense of achievement.

Secondly, this study is of great importance if management of financial institutions HOCCUL in particular wants to maintain their growth and continuity. Thus, guaranteeing survival of the business. Here the act of losing potential members through lack of confidence in such member is highly minimized. This study is therefore of paramount importance to both small and large financial institutions in developing countries since the greater part of the population is yet to be aware of banking operations. This study will intend help the banking sector to see the need to make improvement into their quality of service and try to implement any relevant new development technology into their services.

This project will go a long way to enable the staff of MFFs to know the importance of members to credit union and how they should be related in order to maintain a good relationship between them. This study will help the staff of MFFs to be able to stop out problems faced by the member so as to solve them and strengthen the relationship between the members and the MFFs.