ABSTRACT

This thesis seeks to propose solution to the problem of employee performance looking at ICT components as a possible solution. In this light, the study aimed at examining the effect of information and communication technologies (ICTs) components on employee work performance in Category I micro-financial institutions in Bamenda. The study adopts questionnaires as a research instrument to collect data from the sampled population through convenient sampling with a total of 55 questionnaires administered to 55 employees from 35 Category I micro finance institutions under Cameroon Cooperative Credit Union League. The data obtained were analysed using IBM SPSS and the hypotheses of the study tested using ordinary least square regression technique. The model specification taken into consideration here was the multivariate regression analysis. The findings of the study revealed that ICT hardware, Communication network and ICT literacy had a statistically significant effect on employee work performance in Category I micro finance institutions in Bamenda while application and system software has a statistically insignificant effect on employee work performance. The study also found out that women are increasingly taking up new roles in micro financial institutions as 51% of the respondents were females. Based on the findings, the study recommended amongst others that category I micro-financial institutions should have a separate department for IT that provide a training program for workers on how best to use new ICTs and develop the individual abilities of workers to use these tools properly to leverage the benefits thereof and ensure proper maintenance of these tools or system.

Keywords: Information and communication technology components, Employee performance, Micro finance institutions, Bamenda, Cameroon.

CHAPTER ONE

INTRODUCTION

1.1           Background of the Study

The growth of an e-commerce sector, emerging digital technologies, such as big data, Artificial Intelligence (AI), cloud computing and robotics, drive the implementation of new technologies in organizations (Verhoef et al., 2021). The advances in information and communication technology (ICT) have dramatically changed the way organizations conduct business. The application of the technologies in the workplace has completely redefined inter-organizational and intra-organizational communication has streamlined business processes to ensure benefits, such as higher productivity, the wellbeing of employees and the satisfaction of consumers, (Papagiannidis & Marikyan, 2020). To achieve such benefits, companies make massive spending on technologies.

The increase use of technology by organisations, governments and socially to share, store, create, communicate information within and beyond territorial borders have led to the coining of the term globalization. According to Gambo and Agbeyegbe (2017) the rise of globalization and developments in political, social, economic, technological areas crucially affects communal and organizational lives of individuals in the society. In parallel with these developments organizations management are obliged to develop new management techniques to struggle with even harder competitive conditions. These modern management techniques to a large extent aim to raise employee’s performance by using the power of technology, (Erogluer, 2011).

Information and communication technologies, abbreviated ICTs, are a phrase that has been used by academic researchers since 1980s. According to the National Senior Certificate for Adults (NASCA) South Africa, ICT encompasses various interrelated physical and non-physical technologies used for the capturing of data, the processing of data into useful information and the management, presentation and dissemination thereof. By this definition, ICT involves both software (non-physical) and hardware (physical) computer systems. Other scholars such as Anunobi, Anyanwu, Oga and Benard (2011), UNESCO (2002) have flogged the understanding of ICTs, to mean a multifarious technological tools and resources used for varied operations in organizations. These multifarious technological tools and resources are made up of both old and new tools used to acquire, process, store, edit, retrieve, transfers and disseminate information and knowledge of various formats. These technological tools consist of telephony, cable, satellite, television, radio, intranet, internet, video conferencing, World Wide Web, and more, Automated teller machine and software applications amongst others (Rexwhite, 2020).

Lewis and Byrd (2003) defined information technology as joint technological resources including hardware, operating systems, networks, databases, business applications, and human efficiency, which is investigating the foundation which allows information to flow through the organization, in addition to achieving the ability to design, implement, support current and future information systems, and also support innovation within the organization (Al-Hawary, & Aldaihani, 2016). Byrd et al. (2008) recalled that the elements of information technology are the common technological resources include physical components, computers, communication technology, data and computer applications in addition to the skills, experience and knowledge of the human element.

An important aspect of social life which has been radically transformed by ICT is the world of work. ICT has revolutionized the dynamics of work and the workplace in many respects ranging from innovating work styles and work preferences, to altering production process and creating new jobs. ICT is now considered a critical part of the workplace upon which organizational success or failure depends. Many countries across the globe are leveraging the advances in information and communication technologies (ICT) to enhance the productivity of their private and public sector workers. The performance of private and public sector employees in technologically advanced countries continues to improve – evidenced by the growth of these countries’ gross domestic product (GDP) and the high quality of public services such as primary healthcare and public school system mainly because of access to information for research purposes and decision-making(Onyema & Chiemeka 2023).

According to Al-Hawary and Haddad (2016), employee performance is a result of skills, either natural or acquired, that an employee possess. Al-Hawary et al., (2013), adds that employee motivation towards using these skills is to improve work performance (Al-Hawary & Metabis, 2013). And job performance is defined as a result of three factors together which are: skill, effort, and the nature of working conditions, including the skills, knowledge, abilities and competencies that an individual brings to the Organization (Al-Hawary & Alajmi, 2017; Al-Hawary & Nusair, 2017), effort is the degree of employee rush to complete his work, and the nature of working conditions and to facilitate and improve individual productivity (Levey, 2001).

An argument has emerged among researchers regarding the relationship between information technology and performance, some pointed that the use and adoption of information technology does not guarantee productivity and improve performance (Brynjolfsson, 2003; Brynjolfsson & Hitt, 2000). Some of them stressed that information technology had a clear impact on improving performance at the organization and individual level (Stone et al., 2006), Johnston et al. (2007) pointed out that information technology is to reduce costs and administrative expenses through information systems on delivery time as sufficient information further improve individual performance (Stone et al., 2006). Venkatesh et al., 2003, argued that investment in ICT implementation does not guarantee successful deployment and often bring low returns .The results of market research suggest that the success rate of new technology adoption in organizations, whereby technologies bring expected return on investment (i.e. improved performance), is below 30 percent. The number is less optimistic if consider the companies, who could improve performance, but could not sustain the improvements in the long-term (De la Boutetière, Montagner & Reich, 2018).

In the work context, according to Cascio and Montealegre, (2016); Parker, Van den Broeck, and Holman, (2017) technologies support the achievement of our tasks and, in turn, our tasks are sculpted by technologies. For example, assembly line technology was designed to improve productivity in manufacturing, but the nature of work tasks was also dramatically changed with this technology, (Forman, King, & Lyytinen, 2014). The same applied when we moved from the industrial age to the current information age: ICT, defined as “any electronic device or technology that has the ability to gather, store, or send information” (Day, Paquet, Scott, & Hambley, 2012), has come to the forefront. ICT potentially enables productivity, but it also shapes how work is done in profound ways, therefore affecting the quality of people’s work lives.

Taking advantage of the methodological improvements, the general trend that emerges from recent studies is that of a positive relationship between ICTs and firm performance in developed countries, (OECD, 2003). In particular, Arvanitis (2004) shows that labour productivity in Swiss firms is closely correlated with the use of ICTs. Maliranta and Rouvinen, (2004) have obtained similar results in the case of Finland. Studies carried out in developed countries have suggested that several factors may explain the “lack of informatics in statistics of productivity” in developing countries. Indeed, most results obtained in the case of developed countries confirm that relationships between ICTs and productivity of firms depend on particular circumstances in which the ICTs are used (Pilat, 2004). According to Bresnahan et al., (2002) and Brynjolfsson, Hitt and Yang, (2002) their studies showed that firms with a decentralized organizational structure gained higher productivity from investments in ICTs than firms with a centralized structure. In addition, Gretton et al., (2004) have observed that the impacts of ICTs’ use on the productivity growth in Australian firms were generally related to the level of human capital and skills within firms, as well as experience of these firms in innovation, adoption of advanced professional practices and intensity of organizational changes. Gera and Gu, (2004) and Black and Lynch (2004) obtained similar results in the case of Canadian and U.S. firms respectively.

Yet, recent empirical evidence from developing countries suggests that increased investment in ICTs does not necessarily lead to higher productivity (Dewan & Kraemer, 2000; Chowdhury, 2006). This might reduce firms’ incentives to use ICTs, especially when they are facing tight budgetary constraints. In addition, many firms are still using traditional methods and these firms can switch to use ICTs only if the benefits derived are higher than the investment and maintenance costs. For example, if firms introduce complementary organizational changes along with investments in ICT, the productivity gains will be more important, (Bryjolfsson & Hitt, 2000, Bresnahan et al., 2002). Note that these complementary investments require technical expertise and financial resources that might be limited in small and medium enterprises. Matambalya and Wolf (2001) and Chowdhury (2006) report a negative impact of ICTs on labour productivity in Small and Medium Scale Enterprises (SMEs) in Kenya and Tanzania. Such a result would indicate that on average the use of ICTs is not beneficial for firms in developing countries. But these results do not clarify whether some firms are successful in finding productivity gains and if so, how they get there.

In Cameroon today despite opportunities available in the application of information Technologies in human activities, most organizations today do not still embrace the system in their office and business activities. Most Organizations in Cameroon that use ICTs do not have enough, that is, enough hardware, lack adequate software, poor network, that will ensure effectiveness. In addition, most of the staffs lack the basic skills needed for computer operation. They lack the knowledge of using micro-software word, excel packages, publishing, graphics designs, and use of spreadsheet programmes, telecommunication devices, video conferencing, database query to name a few. This affects the utilization and productivity of employees in the modern organization. Most employees in SMEs specifically Micro-financial institutions in Cameroon and Bamenda especially to perform different tasks ranging from daily operational financial services such as  financial records which are accounting journals, payment vouchers (receipt of payment, savings, withdrawal), expense report form, loan register, land certificates, mortgages, staff assessment to name a few.

1.2              Statement of the Problem

Employees are the force that drives an organization forward as the daily performance of their work hugely influences the success or failure of a business or an organization. In order to stay successful in today’s business environment, organizations must find new ways of maintaining and bringing out the best performance from their employees. Statistics between 2000 and 2017, shows that there was a drop in the number of micro-financial institutions in Cameroon from 652 enterprises in 2000 to 412 in 2017, accounting for a drop of approximately 36.8% (Djatang, 2020). The main reason for this decline is practices of high overall effective costs, revealing the financial fragility of these local financial institutions in Cameroon. Beyond the latter, other reasons have been put forward to justify these failures which include; the existence of over- indebted clients, erosion of the confidence of the sector’s clients who have seen their savings disappear without any guarantee of repayment. According to the Department of Trade and Industry, DTI (2018), the failure of SMEs in Cameroon is partly caused by the lack of appropriate technology, production capacity and access to markets.

A survey by the National Institute of Statistics in 2006, reveals that 56% of companies have invested in at least a basic form of ICTs. However, it is unclear whether and to what extent these technologies have contributed to the growth of productivity and if it has any effect on how the employees perform. This issue is ever more important since about 40 percent of local firms are still reluctant to use ICTs (RIA, 2006).Recognizing the importance of ICTs, the government of Cameroon, has taken appropriate steps in this direction to improve its usage in the country and businesses. It has developed different institutions such as; The National Agency for Information and Communication Technologies (ANTIC), Telecommunication Regulatory Board (TRB) and most importantly the  Ministry of Post and Telecommunication (MINPOSTEL), to oversee and facilitate the implementation and use of Information technologies in the country. It has also introduced the study of ICTs in schools as courses and programs in Universities and as subjects in the  secondary and primary schools in the country since 2001, (Tchinda, 2007).

Today, in Cameroon, despite the opportunities available in the application of ICTs in the workplace, most organisations do not still embrace the system in their office and business activities. This maybe as a result of the huge cost associated in implementing ICTs in the daily activities of an organization. However, as a result of increased demand for customer deposits micro- financial institutions especially have realized the imperative of good and prompt customer service. Due to the fact that some customers lost their deposit in technically insolvent or distressed banks, customers have now become wiser and more discerning alert with regard to choosing where it is safe to put their money and where they would be served promptly, preferably in a pleasant and friendly environment. Thus, they have started looking at the level of service and professionalization of micro-financial institutions before deposing their funds. Proximity to banks has lost its value. The issue now is safety and level of service with respect to quality speed and efficiency has become of most important. In this light, many micro-financial institutions have adopted ICTs in their activities focused on the benefits on its financial performance without considering its effects on the work performance of its employees.

Providing solutions to the problem of employee performance has been the focus of many researches even in Cameroon which uses different solution variables such as job satisfaction and employee performance by Fonkam et al. (2022), leadership style and employee performance by Biaka (2020), motivation and employee performance by Bitaseme (2018) to name a few. This study brings in the concept of ICTs breaking it down to include the different components as a means to determine the effects on employee performance taking the case of Category I micro financial institutions in Bamenda. Note that an organization may use lots of its capital in bringing modern technologies to use but if it is not appreciated by employees, it can be disastrous and the objectives of such may not be realized in time mostly by lack of skills in the organization (Dampano & Agbeyegbe, 2017). However, few have incorporated ICTs in their system especially most Category I micro financial institutions but it has not yet been fully established if these ICTs tools have significantly affected the performance of their employees especially in Micro-financial institutions in Bamenda. This study seeks to know the effect of ICT on employee work performance in SMEs in Bamenda, however, very few SMEs have adopted the use if ICTs in their offices and the major adopters are micro financial institutions. Thus this study makes use of Category I micro financial institutions as a case study.

This study is therefore set to find out whether the effective use of ICT Hardware, software, Communication Network and ICT literacy can improve on employee work performance as expected. Based on the above arguments, this study is designed to provide answers to the following set of questions.

1.3              Research Question

1.3.1        Main Research Question

What is the effect of Information and Communication Technology on employee’s work performance in Category I micro financial institutions in Bamenda?

1.3.2        Specific Questions

1. What is the effect of ICT hardware on Employees work Performance in Category I Micro-financial institutions in Bamenda?
2. Does ICT application and system software affects Employees Performance in Micro-financial institutions in Bamenda?

• How does communication network influence employee’s work performance in Category I Micro-financial institutions in Bamenda?

1. To what extend does ICT literacy affect Employees work Performance in Category I Micro-financial institutions in Bamenda?

1.4               Research Objectives

1.4.1        Main Objective

To determine the effect of ICTs components on Employees work Performance in Category I Micro-financial institutions in Bamenda.

1.4.2        Specific Objectives

Specifically this study sort To:

1. Investigate how ICT hardware affects Employees work Performance in Category I Micro-financial institutions in Bamenda.
2. Analyse the effect of ICT application and system software on Employees work Performance in Category I Micro-financial institutions in Bamenda.

• Evaluate the influence of ICT network on Employees work Performance in Category I Micro-financial institutions in Bamenda.

1. Determine the effect of ICT literacy on Employees work Performance in Category I Micro-financial institutions in Bamenda.