CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

In the mid-1990s, El Salvador was still over supplied with weapons from a 12year civil war that was fought in the Dominican Republic. Given the fact that the business of weapons such as guns was successful at that time, some businessmen whose trucks were being held up by armed gangs had to change their line of business to “goods for guns scheme” since their main business was affected by the war. In their endeavor, the president supported them. This example gives merely a flavour of what is happening in different part of the world to prevent or resolve conflict without the use of violence Scilla, (2001).

Over the years, according to Lewicki, Weiss, &Lewin, (1992) research on conflicts in Organizations has established around a few significant and relevant models that have had a considerable effect on the development of the field academically and in practice. Nicotera& Dorsey, (2006) also argue that during the past decades, the examining of a phenomena at institutional-level has accumulated momentum in the theory and practice of conflict management. Lipsky&Seeber, (2006) noted that in particular, a conflict management system model has gained popularity as several major government and private corporations, nonprofit organizations have embraced these comprehensive conflict management mechanisms along with the increasing popularity of alternative dispute resolution as observed by Goldman, Cropanzano, Stein, & Benson, (2008).

Managers, irrespective of their level in hierarchy of the organization structure (Lower, Middle or Top) are bound to interface with conflict as much they deal with human being this is according to Jennifer & Jones, (2007). Politics in the organization in most cases give rise to conflict as employee or group of employees influence the goal and decision making of an organization to their own selfish interest, usually at the expense of some other employees within the organization (Jennifer & Jones, 2007). According to Lang (2009) stated that top managers in the organization spend more than 25% of their daily time on managing conflicts, while technical managers also use more than 18% of their valuable time on relational employee conflicts, and this has doubled since the early 1980s. Lang (2009) further observed that the reasons for this include the growing complexity of organizations, use of teams and group decision making, and globalization. Conflict significantly affects employee morale, turnover, low productivity and litigation, which affects the prosperity of a company, either constructively or destructively. 

Historically, conflict has been always viewed as undesirable, and as something that should be fully avoided as researched by Esquivel, (1997). In the early 1900’s as researched by Ajike, et,al.,( 2015), Conflict was regarded as an indicator of poor organizational management which needed to be avoided, in the mid 1950’s, it was accepted passively, and it was perceived as normal and expected as managers focused on addressing conflict, while in the 1970’s, conflict was regarded necessary as not good or bad but could be used to stimulate growth, and in the 1990’s managers embarked on confronting and managing conflict suitably as a mechanism to increase it positivity Algert and Watson, (2002). 

Globally, as discovered by Lipsky&Seeber, (2006), Conflict management has gained a lot of popularity and recognition in the structural literature throughout the last two decades due to an alteration in attitudes and perception towards disputes in institutions. Prentice, (2006) also averted that several positive results have been realized such as ability to regulate one’s conduct in conflict circumstances, reduction of suspensions, enhancement in relational communication skills, prevention of violence and improving the capacity to respect and recognize the diverse opinions or views of individuals at place of work are achieved as a result of conflict management programs. It is for this purpose that handling disputes is more vital than shunning and eliminating it.

Conflict among employees has been increasingly popular in Europe, North America and Africa in recent years. Conflicts occur from individual perspective to organizational settings, for example, competition for minimum resources, poor communication about roles and responsibilities of the employees among other factors; however, the results are not predetermined. Renner (2007) recalled various cases when managers from developed countries were expatriated to less developed countries to manage conflicts within various companies and they realized little success because of their failure to recognize and adapt to the conflict management styles of the local culture. Conflict can be beneficially resolved and the final positive product will be realized.

Albert (2011), averted that there are productive and destructive conflicts in workplace, according to him, “Conflict is said to be positive when it is constructively discussed by the parties and amicable terms for settlement reached”. He emphasized that constructively managed conflict in workplace triggers positive employee performance while poorly managed conflict lowers employees’ morale, reduces employees’ productivity, increase employee absenteeism, increase the chances of losing skilled personnel, leads to loss of man and machine hours, and may lead to an increase in the number of defective products produced due to lack of employees’ commitment to work.

Nationally, the performance of employees in the private sector varies from that of the employees in local government as pointed out by Namboze (2013), who states that on average, 68.9% of private sector employees met their employment target output as compared to only 29.6% of local government employees. Similarly, Cheptoris (2014) studied Motivation and Employee performance, revealed that on average 51.6% of local government employees in Most Africa countries do not meet their expected daily work target.

Damachi (1999) emphasizes that if those workers rights and employee prerogatives are trampled upon, could also cause conflict. These include pay, condition of service, and fringe benefits among others. Azamosa (2004) observed that conflicts involve the total range of behaviours and attitudes that is in opposition between owners/managers on the one hand and working people on the other. It is a state of disagreement over issues of substance or emotional antagonism and may arise due to anger, mistrust or personality clashes.Otobo (1987) writing on effects of strikes and lockouts examined resultant effects of industrial conflict at three levels namely psychological, political and economic. In all, every party to industrial action is affected. The needs for an effective conflict management to ameliorate the problems emanating from conflict and assist organization in their struggle for the attainment of corporate objective cannot be over emphasized.

1.2 Statement of the Problem

The crisis which erupted past years following industrial or strike actions by lawyers and teachers against the imposition of the French language in English courts and schools has its roots in the country’s fragmented colonial history, which started with Germany in the 19^th century, and ultimately ended up with Britain and France until independence in the early 1960s (Atabong, 2017). Today’s protesters are now going as far as pushing a separatist agenda, demanding their own breakaway county Ambazonia, made of the present English-speaking regions of Cameroon. This conflict or struggle has greatly affected the economic activities in the English-speaking regions of Cameroon. For instance, there is drop in market share, profit level of organizations like micro finance institutions in the two regions just to name a few (Atabong, 2017). This conflict is external; the greatest problem is when the conflict is from within the organisation, which is the focus of this study.

There is growing recognition of the importance of conflict management in financial institutions. A survey indicates that managers of financial institutions spend a considerable portion of their time dealing with conflict and that conflict management becomes increasingly important to their effectiveness Ojo, (2014). Obisi (1996) argues that despite this fact peace forms one of the fundamental factors to enhanced productivity with resultant benefits to both the labour and management as well as for the economic development of the country. It will not be out of place therefore, to consider conflict as an inevitable and desirable factor in the work place. Conflict could be viewed as a situation of competition in which the parties are aware of their comparability of potential future position in which each party wishes to occupy a position that is incompatible with the wishes of the other. Conflict could arise because of the employee quest to maximize profit while workers representatives are out to ensure continuous improved condition of living for their member. Conflict could also arise as a result of failure to honor agreed items on collective bargaining.

It is hard to avoid conflict entirely, both in the workplace and elsewhere in life. It is human nature to disagree. In fact eliminating conflict entirely would cause its own problems (Doyle, 2018). There would be no diversity of opinion and no way for us to catch and correct flawed plans and policies. Conflicts that are allowed to foster and grow will ultimately diminish productivity and damage staff morale Doyle, (2018). It is why employers seek employees with the skills to manage and diffuse conflict Doyle, (2018). Despite the availability of materials about conflict management, companies are still collapsing because of inadequate conflict management techniques.

Goals are set by enterprises so as to meet up with the objective that are laid down. However, failures have been encountering due to the conflict arisingfrom. The employee of the organization and the environment that fine we find ourselves. Earlier information gathered from Bamenda municipality indicates that output has been changing from one financial institution to another. It is important to note where the changes are coming from, either the changes are coming from within institution or as a result of conflicts from the external environment. So there is need to find out how internal conflict management influences the performance of micro finance institutions that are impeding the attainment of the company’s goals.

However, few studies have been conducted on conflict management and employee performance in Cameroon and none has been specifically conducted in Bamenda to address performance of employees in micro finance institutions thus creating a gap that this study shall fill. Precisely it is due to this background that the researcher gained interest to assess the influence of conflict management and employee performance in among micro finance institutions in Bamenda.

1.3 Research Objectives

The main objective of this study assesses how conflict management influences employee performance in micro finance institutions in Bamenda.

The specific objectives of the study were;

• To identify how arbitration influences employee performance in MFIs in Bamenda.
• To evaluate how negotiation influences employee performance in MFIs in Bamenda.
• To examine how confrontation influences employee performance in MFIs in Bamenda.

1.4 Research Questions

The main research question of the study is; How does conflict management influence employee performance in MFIs in Bamenda?

Specifically;

• How does arbitration influence employee performance in MFIs in Bamenda?
• How does negotiation influence employee performance in MFIs in Bamenda?
• How does confrontation influence employee performance in MFIs in Bamenda?