AN INVESTIGATION ON THE IMPACT OF EMPLOYEE RELATIONS ON ORGANIZATIONAL PERFORMANCE IN COMMERCIAL BANKS IN CAMEROON: A CASE STUDY OF UNION BANK, BAMENDA, CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Organizations cannot effectively perform and reach their objectives if there exists poor relations between employees and employers. Hence, it is imperative for managers to establish and nurture positive relationships with their employee. Furthermore, the importance of fostering effective employee-management relations is underscored throughout various stages of employment, including recruitment, tenure, and separation (Rose, 2018). Similarly, a harmonious employer-employee dynamic is fundamental to organizational success as it motivates employees to enhance their performance and achieve better results (Burns, 2020). In today's competitive business landscape, the application of human relations principles in managing human resources is paramount (Christen, Iyer & Soberman, 2019). Factors like job satisfaction are contingent upon fostering a conducive working relationship between labor and management (Boyle, 2016). While organizations may possess competent, qualified, and motivated employees, the absence of workplace harmony jeopardizes their performance. Recognizing the criticality of employer-employee relationships, employers must prioritize nurturing this dynamic to ensure business growth and success (Bhattacharya, 2018). Pearce and Robinson (2019) advocate for proactive efforts by firms to cultivate positive employee relations, irrespective of union contracts. Organizations require employees who can collaborate harmoniously towards shared objectives and goals. This necessitates fostering good employee relations within the organization, with the aim of achieving harmony and minimizing conflicts in employment practices (Torrington & Hall, 2018). Employee relationship management yields numerous documented benefits for banking sectors, including bolstering corporate communication and culture, enhancing knowledge about the organization’s products and services, and facilitating real-time access to its training tailored to individual needs (Wargborn, 2018). Furthermore, as employees constitute vital components of any workplace, their influence on the performance of an organization cannot be overstated. Thus, maintaining positive employee relations is essential for fostering cooperation and facilitating the exchange of ideas within the organization. According to Muhammad (2018), employee relations encompass a set of organizational practices that address individual issues, emphasizing the critical role they play in organizational evolution and performance. Indeed, the quality of employee relations significantly impacts a company's ability to achieve its goals and meet its requirements. According to Cascio (2019), organizational performance is gauged by organization’s results and quality metrics. However, many organization prioritize retaining loyal and engaged employees, recognizing their significant contribution to various facets of the business. Research by the Harvard Business Review (HBR) underscores the importance of employee engagement, with 71% of respondents affirming its pivotal role in overall organizational success. On the other hand, numerous factors influence employee relations and consequently, the organizational performance of a company. Management practices, for instance, can either positively or negatively affect employee performance within the organization. Additionally, the physical work environment and other contextual factors also play a role in shaping employee relations and, by extension, organizational performance. Therefore, a survey will be conducted in order to investigate on the impact of employee relations on organizational performance in commercial banks in Cameroon: a case study of union bank, Bamenda, Cameroon.

1.2 Statement of the Problem

The banking sector's significance in the economy underscores the direct correlation between employee performance and industry success. Yet, employees in this sector encounter numerous challenges that can impede their effectiveness. In Cameroonian banking institutions, professionals encounter distinctive obstacles affecting their job satisfaction and performance. Challenges include limited prospects for career advancement, inadequate training, a restricted customer base, insufficient technological infrastructure, geographic constraints, and work-life balance issues. A survey by Akumu and Mary (2021) found that 60% of bank employees felt overwhelmed by their workload, indicating the necessity for strategies such as workload distribution, resource allocation, and time management to mitigate stress and enhance performance. Similarly, a survey conducted by Muhammed (2018) revealed that 65% of bank employees struggle with work-life balance due to prolonged work hours and rigid schedules. Furthermore, data from the Narok County Chamber of Commerce highlights that only 25% of commercial banks in the region have structured recognition and rewards programs in place. Hence, it is in the light of these that the study seeks to investigate on the impact of employee relations on organizational performance in commercial banks in Cameroon: a case study of union bank, Bamenda, Cameroon.

1.3  Objectives of the Study

The main purpose of this study is to investigate on the impact of employee relations on organizational performance in commercial banks in Cameroon: a case study of union bank, Bamenda, Cameroon. Specifically, the study will;

1. To analyze the relationship between employee relations and organizational performance in commercial banks in Cameroon.

2.   To Investigate the impact of adequate employee relations on the performance of employees in Union bank, Bemenda, Cameroon.

3.    To Investigate the causes of poor employee relations in Union bank, Bemenda, Cameroon.

4. Recommend strategies required to improve employee relations in Union bank, Bemenda, Cameroon.

1.4 Research Questions

The following questions have been prepared for the study:

What is the correlation between employee relations and organizational performance in commercial banks in Cameroon?

How does the adequate employee relations influence the performance of employees in Union Bank, Bemenda, Cameroon?

What are the cause of poor employee relations in Union Bank, Bemenda, Cameroon?

What strategies should be implemented to enhance employee relations in Union Bank, Bemenda, Cameroon?

1.5  Research Hypotheses

H0: There is no significant impact of employee relations on organizational performance in commercial banks in Cameroon

Ha: There is a significant impact of employee relations on organizational performance in commercial banks in Cameroon

1.6  Significance of the Study

Employers and employees will both benefit from the study. Employees will benefit from the chance to share their unique viewpoints on labor relations and how they affect output. They can make suggestions on how to improve interactions between employees and telecom companies. However management is also going to gain from this. They will be given the study's conclusions as well as suggestions made by the participants. Through this study, they will gain an understanding of the benefits of cultivating positive employee relations and how it affects performance. Furthermore, management in a variety of organizations, sectors, and businesses will learn from the study about the implications of employee-employer relationship practices. The focus will be on emphasizing the essential employee relations procedures that businesses use for the good of their employees. Moreover,  subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the impact of employee relations on organizational performance in commercial banks in Cameroon: a case study of union bank, Bamenda, Cameroon.

1.7 Scope of the study

The scope of this study is boarded on the impact of employee relations on organizational performance in commercial banks in Cameroon: a case study of union bank, Bamenda, Cameroon. Empirically, this study will examine the nature of employee relations in telecommunication firms in Cameroon, assess the impact of employee relations on employee productivity in telecommunication firms in Cameroon and identify the challenges of maintaining effective employee relations in the telecommunication firms in Cameroon. Geographically, the study will be delimited to staff in telecommunication firms in Douala, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Employee Relations: refers to the interactions, dynamics, and relationships among employees within an organization and between employees and management, encompassing communication, teamwork, conflict resolution, and workplace atmosphere (Olaolu, 2019)

Performance: the extent to which an individual, team, or organization successfully achieves predetermined goals, objectives, or standards within a given time frame.

Employee: an individual employed by an organization or company to perform specific tasks or duties in exchange for compensation.