CHAPTER ONE

INTRODUCTION

1.1. Background to the study.

Businesses nowadays are operating in a turbulent environment where organizations in the world are searching for measures that will allow them to improve their performance and competitiveness (Dodd, 2003). Leadership is generally refered to as a critical factor for improving the performance of employees’ in micro finance institution (Paracha et al., 2012). That is why various organizations have changed their approaches to enable them to manage their organizations effectively to avoid conflicts at all costs. Dealing with conflicts is a great challenge to management (Adomi and Anie, 2005). Conflicts commonly arise when employees interact in organizations and compete for scarce resources. Employees in various organizations are organized into manageable groups in order to achieve common goal, therefore, the probability of conflicts to arise is very high. Nowadays, most serious conflicts make headlines in the newspapers, which might affect the public image of the company. Not all conflicts are bad and not all conflicts are good, according to Hocker and Wilmot (1995). People tend to view conflict as a negative force operating against successful completion of group or common goals. Conflict can create negative impact to groups but may also lead to positive effects depending on the nature of the conflict. The positive effects of conflict: improving the quality of decisions, stimulating involvement in the discussion and building group cohesion. Conflict also will be potentially destructive in groups especially when it consumes individual members` energies instead of concentrating on other productive activities of the organisation. However, conflict can interfere with group process and create so much interpersonal hostility that group members may become unwilling or unable to work with others in achieving the organisational objectives. Unresolved conflicts grow into bigger conflicts, the more it grows, the greater the chance of collecting more problems (Knippen and Green, 1999). Similarly, some of these problems, which might arise due to conflict, are lack of cooperation, poor communication, wasted and contagious conflict.

Hocker and Wilmot (1995) discuss several methods of ending conflicts: avoidance, procedural resolution of some kind, including reconciliation and/or compromise and/or award. Avoidance of conflict often leads to intensified hostility and may later cause greater problems for the group. Therefore, one of the first steps in conflict management is to recognize that a conflict situation exists, don`t ignore it since it cannot disappear on its own.

The conflict management systems should be integrated within the system of the organization and the integration should be at higher level of the organisation hierarchy rather than being interconnection, conflict management is a human sub-system which is achieved typical development process. The process starts with assessment and inquiry, addresses the design, and evaluation (Ford, 2007). This indicates that organization management must have a system in place to resolve conflicts.

In social life, conflicts do occur but they are managed by family members, friends and relatives. The same case applies to organisations, when conflicts arise; it needs to be resolved by management for the sake of the organisational growth, survival and enhance performance. However, conflicts are rarely resolved easily, to a certain extend most conflicts are managed, as individuals work out differences (Barker et al., 1987). Conflict can occur within groups (intra-group conflict) or among groups (inter-group conflict).

A few studies have been done on the same topic of conflict management with reference to the European context. Mwangi (2010), carried out a study on the effects of workplace conflicts on the performance of teachers in secondary schools in Europe and concluded that conflicts had an impact on the performance.

Similarly, a report on the findings of a survey done on the educational institutions in Kenya (Huseman, 2011) revealed that most educational institutions have been less successful in the management of conflicts in spite of the Government policies put in place including arbitration, communication, third party intervention and negotiation (Ministry of Education report, 2008). Many of the unmanaged conflicts were characterized by teacher’s strikes characterized by violence and wanton destruction of property. This had a trickle-down effect on institutional academic performance

In Nigeria, (Sandy et al., 2000) conflict is viewed and handled piecemeal and is considered a local event. The inability to view and manage workplace conflicts systematically has therefore rendered conflict dysfunctional in some organizations in Nigeria .This development is largely due to the inability of leaders in Nigerian work organizations to view the management of conflict as systematically as they view information, human resources, and financial management systems.

Conflict in Cameroon industries has become perennial and disturbing so much that it has hampered the growth of some organizations in Cameroon. In many organizations in Cameroon today, internal (intrapersonal) and interpersonal conflicts are consuming so much organizational time and attention that organizations are starting to look as though conflict is their primary business (Ojielo, 2003).

This is evidenced by the high frequency of strike action, the unhealthy rivalry between and among sub-units and individuals within an organization, sabotage at the workplace, slow work, labour turnover, absenteeism, lack of productivity, general inefficiency, high rate of an industrial accident, low morale, withholding of vital knowledge and a host of others that are being perpetrated by workers in workplaces (Ojielo, 2003).

For people to progress at work and another aspect of life, there must be cooperation which is essential to ensure task attainment and stability in life. However, it would be wrong to reach a conclusion that cooperation is good while conflict is bad; this is because both concepts do co-exist in our social life. Hence conflict could be term inevitable given the wide range of goals for the different stakeholders in the organization as the case implies with Banque Internationale du Cameroun L’Epargne et le Credit (BICEC) Bank. (Ojielo, 2003).

It’s is worth noting that conflict does not only affect the organization it also has an effect on the individuals. This is seen as signs such as stress, headache, and loss of appetite are often the case with individuals after a conflict.

1.2 Statement of the Problem

   In many organizations in Cameroon today, internal (intrapersonal) and interpersonal conflicts are consuming so much organizational time and attention that organizations are starting to look as though conflict is their primary business (Ojielo, 2002). This development is largely due to the inability of leaders in Cameroon work organizations to view the management of conflict as systematically as they view information, human resources, and financial management systems. Instead, conflict is viewed and handled in piecemeal and is considered as local events. The inability to view and manage workplace conflicts systematically has therefore rendered conflict dysfunctional in some organizations.

Unresolved conflict in the organization generates many serious consequences involving high financial and human costs. Conflict may lead to frustration, tension, low morale, missing meeting deadlines, and lack of self-confidence, low trust level, communication problems, absenteeism, and legal proceedings (Buss, 2009). Mismanaged conflict affects productivity (Cram and MacWilliam’s, 2009). Mishandled conflict affects employees‘health and wellbeing, which in turn results in absenteeism. It is a habitual pattern of absence from duty or obligation (Jung, 2003). Mismanaged and unresolved conflict causes stress, reduces confidence levels, makes employees anxious, and frustrated. All these lead to lesser job satisfaction, humiliation, embarrassment, and stressed; these induce psychological and physical diseases. Escalated conflict leads parties to shun contact, end communication, withheld information or provide wrong information (Cram and McWilliams, 2009)

Conflict is seen to be inevitable and presently continues to be an issue in almost all organization whether small. On a number of occasions, they are a manifestation of conflicts in the community. Management and administrators should be able to recognize conflict and take conflict management as vital (Mukhtar, 2013). This is to know the positive and negative impact it will have on the organisation and employee performance in the long run, and to find a way on how to manage conflicts and to apply conflict management styles and follow the proper steps.

Therefore, the main aim of this study is to examine the effects of conflict management strategies on employee’s performance in commercial banks in Bamenda Cameroon. It specifically tries to examine in detail, the effects and recommend various strategies on how to resolve organizational conflicts to enhance employee’s performance

1.3 Research Questions.

The research problem has given guide for the research to formulate the following questions.

1.3 Main Research Question.

What are the effects of conflict management strategies on employees’ performance in commercial banks in Bamenda?

1.3.1. Specific Research Questions.

What are the effects of the avoiding conflict management strategy on employees’ performance in commercial banks in Bamenda?

 What are the effects of the collaborating conflict management strategy on the performance of commercial banks in Bamenda Cameroon?

What are the effects of the accommodating conflict management strategy on the performance of commercial banks in Bamenda Cameroon?

1.4 Research Objective.

1.4.1 Main Research Objective.

To examine the effect of the different conflict management strategies on the performance of commercial banks in Bamenda Cameroon.

1.4.2 Specific Research Objective.

1) To examine the effect of the avoiding conflict management strategy on the performance of commercial banks in Bamenda Cameron

2) To analyze the effect of the collaborating conflict management strategy on the performance of commercial banks in Bamenda Cameroon

3) To determine the effect of accommodating conflict management strategy on the performance of commercial banks in Bamenda Cameroon