AN ASSESSMENT OF FACTORS CONTRIBUTING TO OFFICE POLITICS IN THE FINANCIAL SECTOR OF CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the Study

Office politics is a significant concern in contemporary organisational behaviour since it entails individuals who manipulate their professional ties to engage in discriminatory practices against other employees and engage in competitive conduct to acquire resources for their personal benefit, often at the detriment of the team or firm. This scenario poses challenges for the individuals collaborating, and the ultimate outcome can be even more catastrophic. Employees and managers who prioritise the political dynamics of their work may find themselves with limited time to focus on their actual job responsibilities. A study conducted by Ferris and Kachmar (2020) demonstrated that employees who had a view of politics were more likely to experience a decrease in job dissatisfaction. Furthermore, according to Dhar (2019), organisational politics poses a risk to both employee retention and job productivity.

A key aspect that contributes to office politics in the financial sector is the fierce struggle for promotions, bonuses, and other forms of acknowledgement. Within a context where career advancement is frequently influenced by performance measurements and financial objectives, individuals may resort to political tactics in order to safeguard their positions and propel their professional growth. Adebayo and Adetunji (2023) conducted a study which found that the competitive environment in the banking sector fosters political manoeuvring among employees who are competing for limited possibilities and striving to outperform their colleagues.

The organisational structure has a crucial role in the emergence and perpetuation of office politics. The financial sector is frequently defined by inflexible hierarchies and centralised decision-making procedures, which can generate power disparities and cultivate political conduct. According to Onyema and Eze (2023), employees in these types of workplaces may participate in office politics in order to curry favour with their superiors, exert influence over decisions, or obtain resources. The hierarchical structure of financial organisations can also contribute to the occurrence of favouritism and nepotism, which can intensify political tensions even further.

The significance of leadership and management strategies in influencing office politics should not be underestimated. Leadership styles that prioritise control, competitiveness, or favouritism can foster an environment conducive to political behaviour. According to a study conducted by Obasi and Olabode (2022), executives who participate in or allow political behaviour establish a model for their employees, therefore fostering a culture of office politics within the organisation. Transparent and inclusive leadership techniques can counteract the adverse impacts of office politics.

Moreover, the financial industry's intense atmosphere, marked by strict time constraints, exacting customers, and substantial monetary perils, might add to heightened stress and anxiety among staff members. Such stress might result in employees engaging in political behaviour to handle their tasks, save their reputations, or shift responsibility for future failures. The psychological consequences of a high-stress setting are extensively documented, with research indicating that stress can intensify competitive and political conduct in the workplace (Nwachukwu et al., 2023).

Employees within an organisation hold varying perspectives on political matters. Political influence can also be employed to uphold the existing state of affairs in situations where change is certain. The impact of political behaviour on an organization's success may be determined more by how it is perceived rather than the actual truth, according to Parker, Dipboye, and Jackson (2018). Nevertheless, the majority of work on office politics has consistently demonstrated that engaging in office politics tends to create negative perceptions among employees.

Kacmar, Bozeman, Carlson, and Anthony (2019) asserted that office politics leads to both an intention to leave the organisation and a lack of contentment with one's job. Studying the impact of an employee's personal traits on their impression of office politics is crucial, as the majority of workplace political activities take place among managers. In addition, office politics is occasionally synonymous with office bullying. It can appear as discrimination, such as intentionally undermining an employee's performance evaluation, refusing to promote them or provide them performance-based bonuses, and occasionally pushing away individuals who are seen as dangers or liabilities.  Therefore, this study seeks to assess factors contributing to office politics in the financial sector of Cameroon.

Statement of the Problem

It has been suggested that inside an organisation, the engagement in office politics consistently leads to conflicts. Stress and poor social behaviours serve as indications of unfavourable office politics (Chang, Rosen, and Levy, 2019; Mungwari, 2018). Employees may experience stress, frustration, and demotivation when they are subjected to bad office politics. This is because political behaviour includes activities such as power abuse and bullying that are not necessary for fulfilling one's formal function in the organisation. The organisational climate survey conducted by Parker, Dipboye, and Jackson (2019) indicated that office politics is a significant factor influencing individuals' impression of their work environment. This factor has a larger correlation with role conflict, as found by Chang, Rosen, and Levy (2019). The authors also disclosed that the way people perceive office politics is strongly and positively associated with experiencing stress and having the intention to leave the job. Additionally, it is negatively related to job satisfaction and emotional commitment. Specifically, the way people perceive office politics is linked to higher levels of psychological stress, which immediately leads to a decrease in work performance. Additionally, this stress indirectly contributes to higher intents to leave the job by reducing morale (Saiful Azizi Ismail and Daud, 2019). Thus, this study seeks to assess factors contributing to office politics in the financial sector of Cameroon.

 1.3  Objectives of the Study

The main purpose of this study is to assess factors contributing to office politics in the financial sector of Cameroon. Specifically, the study will;

Assess the extent to which hierarchical structure influences office politics in the financial sector of Cameroon.

Determine whether a lack of transparency in decision-making processes contributes to office politics in the financial sector of Cameroon.

Investigate the extent to which nepotism and favoritism affect office politics in the financial sector of Cameroon.

Assess the extent to which ineffective leadership influences the prevalence of office politics in the financial sector of Cameroon.

1.4  Research Questions

The following questions have been prepared for the study:

To what extent does the hierarchical structure influence office politics in the financial sector of Cameroon?

Does a lack of transparency in decision-making processes contribute to office politics in the financial sector of Cameroon?

To what extent do nepotism and favoritism affect office politics in the financial sector of Cameroon?

To what extent does ineffective leadership influence the prevalence of office politics in the financial sector of Cameroon?

1.5 Research Hypotheses

H0: There are no significant factors contributing to office politics in the financial sector of Cameroon.

Ha: There are significant factors contributing to office politics in the financial sector of Cameroon.

1.6 Significance of the Study

Having insight into the factors that contribute to office politics inside financial institutions will allow  organisations to identify the underlying reasons for internal conflicts and power struggles. Moreover, this research offers significant insights into the root causes of office politics, making it particularly useful for HR managers in the financial sector. In addressing these elements, the HR department will develop and execute plans to mitigate detrimental office politics, enhance employee interactions, and establish a fairer work environment.

Additionally, this research will provide valuable insights into the determinants of office politics, which frequently result in stress, job discontent, and diminished job security, thereby benefiting employees. Furthermore, 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 factors contributing to office politics in the financial sector of Cameroon.

1.7 Scope of the study   

The scope of this study is boarded on factors contributing to office politics in the financial sector of Cameroon. Empirically, the study will assess the extent to which hierarchical structure influences office politics in the financial sector, determine whether a lack of transparency in decision-making processes contributes to office politics in the financial sector, investigate the extent to which nepotism and favoritism affect office politics in the financial sector and assess the extent to which ineffective leadership influences the prevalence of office politics in the financial sector.

Geographically, the study will be delimited to some selected financial institutions in 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

Office Politics: refers to the strategies and behaviors that individuals use within an organization to gain advantage, power, or influence.

Financial sector: The financial sector refers to the part of the economy that provides financial services, such as banking, insurance, investment, and asset management. It includes institutions like banks, insurance companies, stock exchanges, and other organizations that facilitate the flow of money and investment within the economy.