IMPACT OF CULTURAL DIVERSITY ON ORGANIZATIONAL MANAGEMENT IN ( UNION BANK OF CAMEROON)

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The rapid advance of globalization is believed to have caused some level of convergence between African traditional values and Western management practices (Bergiel et al., 2012). In addition, the increasing globalization requires more interaction among people from diverse cultures and back grounds than ever before. However, people no longer live and work in an insular market place, they are now part of a worldwide economy with competition coming from nearly every continent. For this reason, organizations need diversity to become more creative and open to change. On the other hand, with growing competition among companies, African businesses are facing numerous management challenges due to cultural differences. Research indicates that the success or failure of an organization is closely tied to its culture (Kotter & Heskett, 1992), with leadership style and employee motivation identified as crucial influencers of organizational effectiveness (Gopal & Chowdhury, 2014). Corporate culture significantly impacts various aspects of a firm's performance, especially in terms of leadership effectiveness in implementing business strategy (Want, 2003) and fostering employee motivation (Molenaar et al., 2002). Thus, there is a pressing need for continuous improvement in a company's effectiveness and efficiency to establish a competitive advantage and address these challenges. In this context, organizations must, among other measures, cultivate cultural values that fully harness the potential of their employees, with leadership playing a central role in this developmental process. In addition, according to  as Deal and Kennedy (1982) and Peters and Waterman (1982), a well-managed corporate culture has the potential to enhance a company's competitive advantage. Furthermore, Ewanlen, Ogendengbe & Rebman (2012), posit that the way of doing things in one culture may not always be the same in another country. Hence, what is good in one culture may be bad in another. Ewanlen et al (2012), further asserts that cultural differences do affect managerial behaviour and practices such as planning, organizing, staffing and controlling. Similarly to this, Dasanyaka and Mahakalanda (2008) note that as the world moves toward a knowledge-based economy, there is a greater need than ever to adjust to external and internal changes in organizational culture.

In conceptual sense, cultural diversity has been defined as “the representation, in one system of people with distinctly different group affiliations of cultural significance’. It has been studied in both laboratory and field setting. Laboratory studies grounded in the value in diversity perspective (Earley and Mosakowski, 2000). Also, other researchers also point out that more studies within the field of diversity, from an organizational perspective are needed today (De los Reyes, 2000) unmanaged diversity in the work place might become an obstacle for achieving organizational goals. Additionally, Mazur (2010), defines cultural diversity as “the representation, in one social system, of people with distinctly different group affiliations of cultural significance”. Depending on how a leader handles cultural diversity, a work group's diversity in culture can either boost or lower productivity. Therefore, leaders must comprehend cultural variations, human nature, and personality distinctions in order to achieve the organization's aims and objectives. Leadership involves influence, people, unequal distribution of power (boss and subordinates), process and attainment of specific goals and objectives. Beyond that, cultural diversity affects leaders’ decision making and interpersonal relationship with others. According to Solomon and Styn (2017), clashes of values and culture may affect productivity. In this light, leaders are required to engage with staff members whose culture differs from their own as the attractiveness of different leadership styles varies in line with staff member cultural preferences ). Therefore, a survey will be conducted in order to examine the impact of cultural diversity on organizational management in Union bank of Cameroon.

1.2 Statement of the Problem

Union Bank of Cameroon, many other firms that operate in a worldwide and diversified corporate environment faces a complex problem in efficiently managing cultural diversity within its workforce. However, the increasing diversity among employees, characterized by differences in cultural backgrounds, values, beliefs, and communication styles, has the potential to significantly impact the organization's management practices. Additionally, with cultural diversity, conflict becomes unavoidable. When employees from varied cultural backgrounds come together in a team to collectively pursue a common goal, the existence of diverse opinions and other factors may impede the establishment of cohesion. Also, disagreements and various variables can serve as obstacles to unity in such collaborative efforts. Employees may find grounds for conflict with each other, and these conflicts may or may not be directly related to work tasks (Martin, 2014). Therefore maximizing and capitalizing on work place diversity has become an important issue for management today. It is in the light of these that the study seeks to examine the impact of cultural diversity on organizational management in Union bank of Cameroon

1.3  Objectives of the Study

The main purpose of this study is to examine the impact of cultural diversity on organizational management in Union bank of Cameroon. Specifically, the study will;

1.Determine the extent to which Union Bank of Cameroon's core values align with the principles of cultural diversity.

2.Examine the correlation between cultural diversity and Organizational Management in Union Bank of Cameroon

3.Investigate how cultural diversity influences communication patterns among staff in Union Bank of Cameroon

4.Investigate the Impact of Cultural Diversity on leadership styles in Union Bank of Cameroon.

1.4 Research Questions

The following questions have been prepared for the study:

1.        To what extent do the core values of Union Bank of Cameroon align with the principles of cultural diversity?

2.        What is the correlation between cultural diversity and Organizational Management in Union Bank of Cameroon?

3.        How does cultural diversity influence communication patterns among staff in Union Bank of Cameroon?

4.        What is the impact of Cultural Diversity on leadership styles in Union Bank of Cameroon?

1.5 Research Hypothesis

H0:There is no significant relationship between crisis management and organizational efficiency.

HA: There is a significant relationship between crisis management and organizational efficiency.

1.5  Significance of the Study

This study will help them navigate cultural differences, improve collaboration, and foster a sense of inclusion within the work space. Additionally, leaders and managers in organizations will gain valuable insights into adapting leadership styles to effectively manage a culturally diverse team. 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 the impact of cultural diversity on organizational management in Union bank of Cameroon

1.6 Scope of the study

The scope of this study is boarded on the impact of cultural diversity on organizational management in Union bank of Cameroon. Theoretically, this study will determine the extent to which Union Bank of Cameroon's core values align with the principles of cultural diversity, examine the correlation between cultural diversity and Organizational Management in Union Bank of Cameroon, investigate how cultural diversity influences communication patterns among staff in Union Bank of Cameroon and impact of cultural diversity on leadership styles in Union Bank of Cameroon. Geographically, the study will be delimited to staff of Union Bank of Cameroon.

1.7 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

Organization: Is a combination of individual effort in pursuit of certain common purpose..

Culture: Can be defined as a statement of intentions, expectation goals or targets set by management for accomplishment

Leadership: This is how the leader communicates in general and relates to people, the way in which the leader motivates and trains the subordinates and the way leaders provide direction to his/her team to

Cultural Diversity: defines as “the representation, in one social system, of people with distinctly different group affiliations of cultural significance”.

Management: Is the art of getting things done through others

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