IMPACT OF ORGANIZATIONAL CONFLICT ON EMPLOYEES PERFORMANCE IN BUSINESS ESTABLISHMENTS IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Conflict is an inherent aspect of business organizations, stemming from the divergence of interests between workers and management. It is inevitable in workplaces due to varying values, goals, and targets among individual employees. According to Özdemir(2019), conflict manifests at both individual and collective levels, influenced by factors such as personality differences, organizational structure, and external pressures. Even with sound management practices, conflicts persist, especially in hierarchical business establishment where diverse perspectives intersect. Furthermore, conflict can be defined as a situation where conflicting interests hinder the achievement of organizational goals or as a breakdown in communication within the organization (Saifan, Ahmed and Taghreed, 2019). While conflict may not inherently tarnish an organization's reputation, it presents opportunities for resolving contentious issues for the benefit of both employees and the organization. Rather than attempting to suppress or eliminate conflict, management's role lies in effectively managing it to stimulate employee and organizational performance. 

Conflict management is integral to corporate governance, aiming not to establish an ideal scenario but to strategically employ conflict resolution strategies for effective management within corporate settings. However, conflicts can have both positive and negative effects on organizational performance, with proper management enhancing work performance and poorly managed conflicts leading to disarray and hindering organizational effectiveness. Effective conflict resolution strategies highlight weaknesses in organizational decisions, prompting the need for lasting solutions (Pop, 2019). It falls upon management to address conflicts constructively to improve both employee and organizational performance, fostering good communication, harmonious industrial relations, team cohesion, and increased productivity.

In business establishments, conflict resolution assumes heightened importance due to the sector's vulnerability to significant financial losses during conflicts. Hence, effective conflict resolution mechanisms are imperative to safeguard the industry from adverse financial impacts.  Therefore, a survey will be conducted in order to examine the impact of organizational conflict on employees performance in business establishments in Cameroon

1.2 Statement of the Problem

Conflict is an unavoidable aspect of organizational dynamics across various establishments and industries. In the process of achieving organizational objectives, disappointments, disputes and conflict will surely arise. This strongly suggests that the occurrence of bickering, backbiting, blame shifting, gossiping and undermining of others can never be completely eradicated from any human society.This stems from the diverse interests, objectives, and targets of individual employees, often misaligned with those of management. However, the approach taken by organizations especially business establishments in Cameroon in managing conflicts greatly influences their corporate and staff performance, indicating both positive and negative impacts on organizational effectiveness. On the other hand, Al-Majali & Tamimi (2018) asserts effectively managed conflicts foster a harmonious environment among employees, bolstering cooperation between staff and management, enhancing employee performance, and driving organizational profitability and growth. Moreover, employee contribute to sound decision-making processes, provide valuable insights for future conflict resolution based on past experiences, mitigate unhealthy competition, and ensure optimal resource utilization(Ongari, 2019).

Conversely, poorly handled conflicts lead to resource wastage, hinder optimal employee performance, sow discord between staff and management, and impede the attainment of organizational objectives. Particularly within deposit money banks, mismanaged conflicts pose significant risks, potentially resulting in substantial financial losses, diminished profitability, damaged reputation, increased employee turnover, and loss of confidence among customers and investors. Such conflicts may even precipitate liquidity issues and insolvency, ultimately leading to financial distress.

Nevertheless, it is crucial for senior management in commercial banks to proactively address conflicts in a constructive manner, aiming to enhance employee performance and overall organizational effectiveness. Hence, it is in the light of these that the study seeks to examine the impact of organizational conflict on employees performance in business establishments in Cameroon

1.3  Objectives of the Study

The main purpose of this study is to examine the impact of organizational conflict on employees performance in business establishments in Cameroon. Specifically, the study will;

1.Find out whether a significant relationship exist between organizational conflict  and employees performance in business establishments in Cameroon.

2.Identify the key factors influencing employees performance in business establishments in Cameroon. 

3.Assess the extent to which organizational conflict affects employees performance in business establishments in Cameroon

4.Determine the impact of organizational conflict on employees performance in business establishments in Cameroon. 

1.4 Research Questions

The following questions have been prepared for the study:

Is there a significant relationship between organizational conflict and employees' performance in business establishments in Cameroon?

What are the key factors influencing employees' performance in business establishments in Cameroon?

To what extent does organizational conflict affect employees' performance in business establishments in Cameroon?

What is the impact of organizational conflict on employees' performance in business establishments in Cameroon?

1.5  Significance of the Study

The findings will offer guidance on effectively and constructively managing conflicts as they arise, providing valuable insights for business establishment to understand conflict origins and adopt suitable resolution strategies to minimize occurrences for the benefit of both employees and organizations. Also, employees will understand how their relationships, both within and across teams, can lead to conflicts and learn approaches to resolve them.

Furthermore, the study's significance extends to the government, recognizing that conflict transcends the private sector and is prevalent in the public sector. The study's findings can aid the government in formulating effective conflict resolution strategies for public sector settings. Additionally, 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 organizational conflict on employees performance in business establishments in Cameroon.

1.6 Research Hypothesis

H0: There is no significant relationship between organizational conflict and employees performance in business establishments in Cameroon.

Ha: There is a significant relationship between organizational conflict and employees performance in business establishments in Cameroon.

1.7 Scope of the study

The scope of this study is boarded on the impact of organizational conflict on employees performance in business establishments in Cameroon. Empirically, this study will find out whether a significant relationship exist between organizational conflict  and employees performance in business establishments in Cameroon, identify the key factors influencing employees performance in business establishments in Cameroon, assess the extent to which organizational conflict affects employees performance in business establishments in Cameroon and determine the impact of organizational conflict on employees performance in business establishments in Cameroon. 

Geographically, the study will be delimited to employees of some selected business establishments in Younde , 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

Conflict: This refers to an open clash between two opposing groups. In organizational context, conflict refers to the disagreement in interests and goals between group of employees and management. Conflict can also occur among group of employees in an organization (Uju, 2020).

Employee:  This refers to a worker who is hired to perform a job. (Oxford English Dictionary).

Employee Performance: This refers to the extent to which an employee achieves certain defined outcomes at a specific period of time. Employee performance is measured using several indicators such as job competency, creativity, teamwork skill, interpersonal relations and time management skill (Dunlop, 2020).

Conflict Resolution: This refers to the process of providing solutions to conflict whenever they arise.