1.3. RESEARCH OBJECTIVES
Research objectives are classified into two: general objective
and specific objectives. 1.3.1. General objective
This research aims at investigating the challenges and prospects
of MFIs in light of Human Capital management.
1.3.2. Specific objectives
a) Analyze the capacity of MFIs to attract skillful
employees;
b) Analyze the capacity of MFIs to retain skillful employees;
c) Analyze external factors that influence MFIs' capacity to
attract and retain skillful employees.
1.4. RESEARCH QUESTIONS
The researcher will address the following questions:
Human capital management in Rwanda: Challenges and prospects
for Microfinance Institutions Major research question
What are the human capital management challenges and prospects in
the Rwandan microfinance institutions?
Minor question 1: Can MFIs attract skillful
employees? Minor question 2: Can MFIs retain skillful
employees?
Minor question 3: Are there external factors
that influence MFIs' capacity to attract and retain skillful employees?
1.5. SCOPE OF THE STUDY
There are many aspects that are interesting to research on.
One could study their profitability, their sustainability, their impact in
poverty reduction; their products etc. However, for this study, only
challenges, and prospects of MFIs in line with Human Capital Management will be
studied.
Besides, there are many MFIs in Rwanda; the ones licensed by
the National Bank of Rwanda are 96. The microfinance policy recognizes three
types, that is, credit and savings cooperatives (SACCO / COOPEC), the public
liability limited companies (Ltd / SA) and private limited liability company
(SARL). Out of 96, there are only 11 public limited liability companies and 2
private limited liability companies in microfinance business. These ones were
studied. Since resources were not enough to study all of them, only 2 of them
were subject to this research. That is DUTERIMBERE IMF SA and IMF UNGUKA SA.
IMF UNGUKA S.A. was studied because it is 100% financed by
individual shareholders. Indeed, it was recognized twice by different raters to
be doing its best in professionalizing the microfinance business. As of
DUTERIMBERE IMF S.A, it was begotten by a local non profit driven
organization.
Besides, majority of its customers are women. It is
interesting because it started with funds from donors. Both of them, however,
were in existence by 2006 when Rwanda experienced the microfinance crisis.
Moreover, because of time and other resources constraints,
research was conducted in Kigali, the capital city and Muhanga which is in 50
minutes drive from Kigali.
1.6. RESEARCH SIGNIFICANCE
This research is significant to the researcher, academics,
clients and investors and to the Government of Rwanda as follows:
i. To the researcher: This research will
avail an opportunity to the researcher to understand more the microfinance sub
- sector in Rwanda. Especially, it is one of the requirements before being
awarded with a MBA in Project Management.
ii. To the academics: After this research is
successfully conducted, a copy will be sent to SFB Library and Maastricht
School of Management. This will avail information to those who may be
interested in this research or other related studies.
iii. To MFIs Clients and Investors: Both
clients and investors in microfinance will be given an opportunity to know more
about this subject matter of the research. This will be a good tool for them as
they take decision in their daily businesses.
iv. To the Government of Rwanda: The GoR
will be given information on this subject matter. Information gotten will be
used for policy formulation and decision making purposes.
1.7. THEORETICAL FRAMEWORK
According to Lacy, Arnott and Lowitt (2009), human capital
management can be seen from the point of view of employees knowledge, skills
and attitudes since these impacts the organization change, leadership
development, learning, performance management and employee engagement.
Human capital management in Rwanda: Challenges and prospects
for Microfinance Institutions Table 1.1. Theoretical
framework
|
Organizational change
|
Leadership development
|
Learning
|
Performance management
|
Employee engagement
|
|
Knowledge
|
Involving
|
Align leadership
|
Informal
|
Give
|
Use
|
|
employees in
|
with company
|
and
|
performance
|
employees as
|
|
Skills
|
|
|
|
|
|
|
decision making
|
objectives
|
formal
|
related
|
agents of
|
|
Attitudes
|
|
|
learning
|
feedback
|
change
|
|
Enhance talent
management
|
Coordinate
|
|
Reward
|
Take care of internal
publics for
sustainability
|
Source: Adapted from Lacy, Arnott and Lowitt
(2009)
| 
