CHAPTER ONE

GENERAL INTRODUCTION

1.1Background of The Study

Communication is the major means by which the function of management are
accomplish. In any organization, effective communication lead to effective
management goals. Effective personnel management is a function of effective
communication. As management involve working with others to achieve corporate
goalies. The realization of an organization hinges on effective communication amongst

the various operating personnel (Al, 2012). Communication has tremendous

implication on the management processes such as planning, organizing, directing; and

controlling. Such activities that consume over fifty percent of the managers time and
that has implication on the principle function of managers need to be handle more
effectively and efficiently and transparency are better managed if there is effective
communication.

According to (Herbert, 2011) observed that without communication there is no

organization; for there is no possibility of the group influencing the behavior of the
individual.

Communication is seen as a process through which information is exchanged and

understood by two or more people, usually with the intended or unintended motives to
influence behavior.

According to Robbins (2011) believe that communication serves for major function
which are for control, motivation, emotional expression, and information. Effective
communication is the transfer of messages followed by feedback from the receiver to
the sender, indicating the receiver's understanding of the message. Communication can
help minimize conflicts and thwart cases of misunderstanding.

Effective communication is important in an organization as it promote decorum among

staff and understanding between superior and subordinate thereby facilitating the
managerial processes. Therefore this study examines communication as a tool for
effective management in the microfinance institution case of Univer Finance
Cameroonian.

According to Thomas and Schmidt (1976), where he said that research indicate that
poor communication is probably the most frequently cited source of inter-personal
conflict.

Mullins (2007) is of the view that effective communications at all levels of the
organization are likely important in helping to reduce or overcome the stress of
organizations.

Without communication managers cannot implement the management process,

hence the goals of the organization cannot be effectively achieve. It is through
information exchange that managers become aware of the needs of customers, client,
and public, the regulation of the government and the concern of the community.

1.2 PROBLEM STATEMENT

The importance of communication in every organization can never be overemphasized
as it helps to a large extent to dictate the ease at which organizations are managed.
Communication has become a very central and critical tool for organization’s day-to-
day activity. Communication also has a tremendous implication on the management
processes such as planning, organizing, directing and controlling. The activities of
efficiency, management, accountability and transparency are better managed if there
is effective communication. It has become an essential tool for smooth organizational
management. This is true for every organization, and even banks inclusive.

Communication in banking sector however, is difficult and subject to

misunderstanding because the message is often complex. Managers in the sector
accommodate information more than they can cope with which normally lead to
communication breakdown, and time and resources are wasted in the course of
explaining some of these idea. The complexity of this message arise from conflicts
about the content, the difficult nature of the subject, difficult working condition and
noise that are inherent in the banking environment.
 Although several researches have been made on communication as a tool for
effective organizational management, most of these studies have been focused on
educational environment, manufacturing industry and the public sector with very few
assessing its impact in the managerial process of financial institutions. This study set
out to bridge this gap by examining communication as a tool for effective management
with reference to the Cameroon banking sector. Also, this study also sought to assess
the impact of communication tools, styles and quality on the effectiveness of
management process in the micro finance institution bank under review.

We go further to talk about the fact that the numerous problem we found out such as

- Telephone: it is a means through which people communicate or a means through

which information is been transmitted from one person to another for the case of UFC,
the communication is very poor because there is only cell phone which everyone
makes use of to communicate with the client and the main agency which is not a good
approach. This makes communication to be slow and information is not receive on
time.

- language: the institution is not bilingual and as such communication is very difficult
between the client and the receptionist(ies) because he can't get what the
client wants and can't help to solve his/her problem.
There is also this aspect of dictatorship that is in the organization the manager just give
other for people to follow the manager does not ask the opinion of the others before
taking any decision which can cause loss or rundown the organization. The
organization does not have a good logical system of communication. This is to say that
there is no means or way that a document can be sent directly to the central agency
without somebody getting there this is something that has to be taken very seriously
which therefore lead to wastage of time and resources.

1.3 RESEARCH QUESTIONS

Base on the research carried out some research question where brought out In the
course of the study.

1. What is the impact of communication tools on the effectiveness of

management in Universe finance Cameroon micro finance institution?
2. What is the relationship between communication style and the effectiveness of
management in Universe finance Cameroon?
3. what is the impact of the quality of communication on the managerial
effectiveness in Universe finance Cameroon institution.
4. Does formal and informal communication go in hand in achieving
 organization objectives?

1.4 OBJECTIVE OF THE STUDY

The broad objective of this study was to examine communication as a tool for
effective management. The specific objectives are;
1 To assess the impact of communication tools on the effectiveness of management in
Universe finance Cameroon institution.
2 To examine the relationship between communication style and the effectiveness of
management in Universe finance Cameroon institution.
3 To examine the impact of the quality communication on the managerial effectiveness
in Universe finance Cameroon institution.
4 to examine whether formal and informal communication go in hand in achieving
organization goal.

1.5 SIGNIFICANCE OF THE STUDY

An organization functions by means of collective actions of different individuals, with
each of these individuals capable of independent actions at each point in time which
should be properly reported to the people that needs to know. Therefore, good
communication is a necessity for achieving coordinated result.
This study therefore is of great significance to the study organization as it was
designed to provides managers of the organization useful insight on the use of
communication tools, the means/method of communication to adopt and the message
perception of employees, thereby reducing incidence of inter-personal and
communication conflicts and creating an open working environment that enhanced the
productivity of the employees.
As an academic research, this study is of great importance as it represents a
humble contribution to knowledge and can be used as bedrock upon which further
studies on communication can be based.

1.6 LIMITATIONS
This study sought to examine communication as a tool for effective management in an
organization. However the study is limited to examining communication as a tool for
effective management in universe finance Cameroon institutions.
When we developed this report, we faced these problems, which disrupted the
fulfilment of this report. There were several constraints while preparing this report.
Only four-five weeks were not sufficient to obtain complete information. Every
research is conducted under some constraints and this research is not an exception.
While preparing the report, we faced a number of problems, which may be termed as
limitations. They are as follow:
 The time was not enough to have more information as we just did one month
of internship.
 Lack of enough time due to university time restriction.
 Difficulties of getting information due to the employees work pressure.
 Lack of proper information due to the organizational secrecy policy.
1.7 PRESENTATION OF THE ORGANISATIONS (UFC).
Identification Form
Name Univers Finance Cameroun
Initials UFC
Social Capital 500,000,000FCFA
Creation Date November 2012
Legal Form Société Anonym (SA)
Number of Agencies 6 Agencies
Web www.universfinancecameroun.net
Type of Enterprise Microfinance institution (MFI)
Category 2nd Category
Nationality Cameroonian
Supervising Ministry Ministry of finance
Approval COBAC/MINFI N°037 du 10 mars 2005
The Head Office Yaoundé
Executive Yaoundé
Management
General manager Mr. KEUFACK Jacquot Alain

The academic internship is the means by which the student makes his first contact with
the world of employment; takes the measure of the hard realities that constitute it and
thus better apprehends his future job. It is in this perspective that UFC has kindly
opened its doors. Therefore, it will be up to us to present its historical background and
organization.

1.7.1 HISTORICAL BACKGROUND AND GEOGRAPHICAL

DISCRIPTION OF THE ORGANISATION.

GENERAL INTRODUCTION OF UNIVER FINANCE CAMEROON

Univer finance Cameroon abbreviated UFC is the culmination of the negotiations of

the enterprise in November 2012 between UFC COOP/GIC CA and the establishment
of micro finance been the 1st categories of establishment in creation represented by
the General Manager Mr.KEUFACK Jacquot Alain under the power obtained by his
administrative council session on the 20th of November 2012.
The SOUTH INVESTMENT COOPORTION abbreviated SINCO SA Establishment
which is the second category of micro finance represented by the General Manager
Mr.BENGONO NNANGA Adolphe , by the powers given to him by his general
assembly on the 30 of January 2013 from the report N17031
Following the session which consist of 97% of the capital from the 50million, the
procedures were as follows.
A new administration was put in place with the designation of new administrator's;
A new administrative president was appointed.
The nomination of a new general manager following the verbal process of the 30 of
January 2013 N 17032.
After the new organ was put in place, it follows the increase of the capital from 50
million to 200 million and from the change of names from SINCO SA who know
became UFC SA.
The information below was been taken note by the ministry of finance by the authority
which correspond to the date of the 24 of July 2013.
The authority was informs about the changement which had to take place on the 12-
09-2013.
UFC SA started full operation on July 2013 after a transitory operation which was
establish from the 04th of March to the 30 of June 2014 ,which lead to the liquidation
of SINCO SA.
Following the transitory operations we proceeded as follows;
-the passive liquidation of SINCO SA:
• The payment of customers deposit since 2010
√ The exploitative dept that was resumed behind salaries
√ The administrative Dept (Customers, Taxes, Patent, Sonel, CNPS.....etc.), rent
- Also we went through
√ The rearrangement of agences such as (MENDONG, EKIE, MVOG MBI);
√ The rehabilitation of agences above;
√ The recruitment and the formation of personnel
The transfer of the main agency from EKIE to WARDA and the opening of the central
agency in the same location in July 2013 with the name UFC. SA. All of the above is
as a result of the recommendation of the COBAC in his report of SINCO SA of the 02
August 2011 and all this led to;
• The reinforcement of proper funds
• The reimbursement of the savings of the public which was kept since 2010
• To maintain and create employment which has become something difficult now our
days.
• To reorganize the institution by putting in place services which were not functioning
well such as (Accountancy, ICT, and Control.... etc.)
The rearrangement and equipment of the agences gave it a new form and made his
client very happy. After 10 months of functioning we were able to realize that was ask
to us by the COBAC as mention on the document of the 02 August 2011.
As mention above this lead to the inscription of UFC SA in the registration document
of MINFI and COBAC still to date.

The General Manager

 KEUFACK JACQUOT ALAIN

GEOGRAPHICAL DESCRIPTION OF THE ORGANISATION

The enterprise Ufc of Mokolo is geographically located in Yaoundé Cameroon in
the Centre region of Cameroon in Yaoundé II of the region, opposite the petroleum
station Oilybia New Message. Also it is located in the Mfoundi division, BP 6944, CE,
Cmt.
A sketch map will be drawn to show the GEOGRAPHICAL location of the enterprise.
Sketch map

1.7.2 ACTIVITIES OF THE ORGANISATIONS (PRODUCT AND SERCICES)

The UFC enterprise offers many kind of production and services.

The production of the organization:

• Individual saving account

• Free saving account Association- GIC
• Islamique saving account
• Investment saving account
• Public contract financing
• Micro Credit for financing your projects
• Help with the assembly of your projects
• Daily saving
• Association and advice to the management of your business.

√INDIVIDUAL SAVING ACCOUNT

The documents required for this account are;
- ID Card photocopy of signatory
- 02 passport size photographs
- Localization plan
- Initial deposit current account: 13 000 Fcfa.

FREE SAVING ACCOUNT ASSOCIATION GIC.

The document required are;
- Status Association
- Receipt STATEMENT
- Inscription Certificate
- PV GA designating the signatories
- PV GA Constitutive
- ID Card photocopy of signatories
- 02 passport size photographs of signatories
- Localization plan
- Initial déposition current account
°Association.......3 000 fcfa
°GIC......................23 000 Fcfa

ISLAMIQUE SAVING ACCOUNT

The document required are;
- ID Card photography
- 02 passport size photographe
- Initial deposit current account: 13 000 Fcfa
- Interest free
And many others.

The Services we offer are;

•Interconnection between the agencies
•Mobile banking
•SMS Banking
• UBA visa cart

MONEY TRANSFER
This is done through
~RIA
~MONEY GRAM
~WESTERN UNION
~C-CASH

Civil servant, Employees of the Private, Public and Para public sector, Retired public
servants, pensioners CNPS can domiciled their salary at UFC (UNIVERS FINANCE
CAMEROUN SA) and take advantages to the opportunities offered to them.
The advantages at UNIVERS FINANCE CAMEROUN SA
 Payment advanced
 Permanent overdraft, special overdraft
 Loans from the first transfer
 School loans
 Account opening free of charge
 Internet and SMS Banking

UFC innovates with UFC Mobile Banking. Officials, Business Men, Entrepreneur,
Traders, Farmers… can now access their account via your phone and have:
 24 hour UFC Mobile Banking (withdrawals and transfers via your phone).
 Access your accounts with UFC Mobile Money deposits to whom you wish.
 Services attached to remote banking via flash money (account consultation,
account transfer, history, and bill payment) via your phone 24h/24.
  SMS Banking (SMS Alert; balance).
 Mobile saving (daily) with billing to secure your best collections.

1.7.3 Organizational structure and chart of the Organization and

their Functions
The governance of UNIVERS FINANCE CAMEROUN SA is ensured by the general
provision of their manual procedure. It implies an efficient organization through an
efficient organic structure and competent human resources. The organic structure
defines the different functions and the different links that exist in the organization. The
Human resources fill the academic and professional profiles that drive the
organization.

The activities of the organization are:

 The execution of policies and commercial strategies of communication and
marketing.
 The execution of management policies for institutional customers and privates
customers.
 The execution of policies and the strategy of commitments.
 The execution of policies and financial management strategy.
 The execution of documents circulation policies or rules.
 The execution of Human Resources Management policy and strategy.
 The execution of the tax management policy and strategy.
 The execution of the management policy and strategy of the real estate and
infrastructures.
 The execution of the policy and strategy of legal management, litigation and
the recovery.

The activities related to the function supported by the operational general

management

The supports of the operational general management are sub according to the
organization of UFC SA whose activities constitute the material assistance and human
to the direction. These activities are not operational activities of return but support
activities performance. These are under the following functions:

The General Secretariat, which manages the following activities:

 Operational agendas,
  Functional calendars,
 Missions and receptions,
 Meetings and purchases,
 The furniture and real estate park,
 The stock of materials, supplies and consumables,
 Housekeeping spaces,
 Filing and archiving,

Secretaries, executive secretaries, carry out these activities and executive fasteners
supervise by the Deputy General Manager.

The management of work support technologies, whose main activities are:

 The specification of hardware and software requirements,
 Receiving hardware and software,
 The assignment of materials,
 The installation of hardware and software,
 The monitoring of hardware and software installations,
 The basic maintenance,
 The security of data base and platforms,

These activities are exercise by a computer manager and assisted by one or more
computer technicians.

A Priori Control, whose activities consist of:

 The preparation and consolidation of different budgets,
 The audit availability line Budget for bargain purchases,
 The audit availability line for granting discovered, financing and credits,
 The audit availability line for commitment,
 The preparation of social tax return,
 The preparation of payroll staff,
 The determination of the situation in cash per day and cash monthly of
UNIVERS FINANCE CAMEROUN SA, with the regard to its cash clean and
its cash on banking,
 The study of the need to funding through the management dynamic arrays
funding,
 The installation of funding files,
The post control, whose activities consist of:
 The verification of the respect of the procedures in the exercise of the banking
activities,
 The verification of compliance with procedures in the exercise of non-banking
activities,
 The recommendation for improvement,
 The audit of prudential standard,
 The monitoring of the fight against money laundering,
 The monitoring of operations, audits of tax administration, social
administration and monetary authority,
 The continuous evaluation of memos and manual procedures for the
preparation of updates by the managers or the board of directors.
 Assist in the preparation of the shareholding authorities and the board of
directors.

An internal auditor who may be assisted by employees carries out these activities.

The activities related to the general legal support function

This function ensures the legal compliance of all the contracts to be concluded by
UNIVERS FINANACE CAMEROUN SA and the downstream of the remedies in
conformity in case of violation of this conformity. These activities consist therefore:
 The secretariat of instances of the general meeting of shareholders.
 The secretariat board.
 Monitoring the reduction of instances of governing bodies.
 The diligence verification of conformity of all legal contractual relations which
is established between UNIVERS FINANCE CAMEROUN SA and a third
party internal or external.
 The optimization of the contractual terms allowing risk control.
 The implementation of remedies when the interests of UNIVERS FINANCE
CAMEROUN SA are involves.
 The monitoring of litigation when the third party triggers the litigation.
 Recovery friendly and compensation amicable.
 The force recovery and force compensation.

The activities linked to the function of current operations

In accordance with the political and the strategy defined, these traditional bank
activities are:
 The receipt of the customer,
 The customer’s orientation,
 The customer’s information,
 The assistance to complete the form of service,
 The customer service who has the following sub activities:
a. The opening of a bank account,
b. The collection of funds,
c. The disbursement of funds,
d. The granting of ease cash,
e. The establishment of certificates of debit,
f. The sending and receipt of funds via money transfer,
g. The sale of prepaid cards,
h. The operations of charging prepaid cards,
i. The management of claims and complaint,
j. The current future service,
k. The collection of daily payments,
 The bookkeeping of customer,
 The monitoring and accompanying of customer,

These activities are perform per day by the responsible of agency, the responsible for
customers, and the cashier. These poles are supervised by the responsible of daily
banking operations.

The activities linked to the function of banking commitments

These activities have more related to commitments that UNIVERS FINANCE
CAMEROUN SA takes for its customers, especially:
 The reception and treatment of credits files and disengagement,
 The collateral management,
 The granting of bank overdrafts higher than 30 days,
 The financing of public procurement,
 The granting of short term and medium term credit to customers,
 The monitoring of auditors credit beneficiaries and commitments,

A responsible for credit commitments will be responsible for these activities, respect
of the political, and the strategy of credit and commitments.
The activities related to the function of business development
The commercial, communication and marketing activities contributing to the business
development of UNIVERS FINANCE CAMEROUN SA, they consist of:
 The commercial prospecting for attracting new customers, retaining old
customers,
 The daily collection,
 The current and future proximity services,
 The execution of the communication policy and strategy,
 The develop and suggestion of marketing policy and strategy,

The manager of this pool and the collectors who are very commercial carries out the
activities.

The activities related to the functions of financial management

The accounting activities are summarize and exercise in accordance with the
provisions of the CEMAC regulation, accounting for microfinance institutions,
financial management policy and strategy. They consist of:
 The receipt of documents constituting a possible financial flow of UNIVERS
FINANCE CAMEROUN SA,
 The background analyses of accounting documents,
 The manual accounting of financial information on documents,
 The entering of information from the accounting system put in place,
 The periodic return of information in a synthesized form,
 The transmission of periodic summary of financial statements to internal and
external users,
 The filing of documents,
 The preparation of accounting and financial correspondence,
 The deployment of the accounting system based on the organizational
development, business development or portfolio development,

The financial activities consist of:

 The establishment of the means of payment of the suppliers and the providers
of the taxes and the rights of the payroll, reimbursement of fees paid to
directors, attendance fees and dividends to shareholders.
 The classifications of payment documents.

A financial manager assisted by accountants carries out these activities

The activities related to the human resources management function
The key factor in the organization of UNIVERS FINANCE CAMEROUN SA is the
quality of human resources that guarantees the efficiency of the organization through
its ability to anticipate, execute, report and evaluate.
The human resources management activities will therefore consist of:
 The receiving of job applications.
 The creation of databases in human resources.
 The establishment of job descriptions and associated academic and
professional profiles.
 The needs of assessment in the hands of the works.
 The definition of career profiles.
 The definition of the evaluation criteria of the personnel.
 Organize the recruitment and integration of staff.
 The collection and processing of current personnel management data.
 The transmission of data from the current directorates for the establishment of
payroll records.
 The application of the human resources management policy and strategy.