The Process Of Knowledge Management And Management Styles Business Essay

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Through this process we have understood what knowledge management is all about. What, to use to make employee relation bring good performance in banking sectors. We have also learnt the management style and all the potential ingredients to employee relation that can be conducted to bring about desired change.

We are now going to view the impact of employee relation deeply in banking sectors in case of Tanzania, where the industry seem to be growing each and every day. We also going to see how these impacts can positively or negatively be adopted by banks and use them to their advantage.

What is the impact of employee relation on the working environment in banking sectors in case of Tanzania?

2.0 Globalization and banking

A lot of discussion have been made and continue to be made on globalization and what is means in business. Globalization can simply be defined as increase global interconnectivity on different aspect such as economies, culture, technology and politics. All the factors mentioned have great impact on third world countries specifically Tanzania in banking sectors where banks can reflect negatively or positively on country economy. Globalization has brought new opportunities to third world countries by opening new marketing from developed countries and technology transfer. After trade liberalization counties are able to trade freely and expand their market which was there before globalization.

2.1 Globalization in banking sector in Tanzania

After financial liberalization the banking sector in Tanzania has been booming tremendously over the few years have passed. The total asset have rise for about 60% from $1.7 billion to $2.4 billion since the end of to the end of 2004. This economy booming has also affect positively employees under banking sector in Tanzania. If banking industry produces stunning financial records the employees will benefit too as the level of motivation will rise.

Through mobilization of financial resources and increasing competition in financial market, banks have been able to live to expectation thanks to globalization. Local banks have been serving the local customer and trust has been earned in return. On the other hand foreign banks have been targeting foreign nationals. Employees are certainly reaping from the booming banking sector because banks have realized the significant part the employees play to the success.

The overall view of the banking sectors in employee relation is very is very promising and the sectors is now setting standard on how relation with employees should be and solved.

2.2.0 Effect of globalization on employee relations

Globalization is one factor that has impacted employee relation both negatively and positively. Changes in employee relation have brought an increase of employee bargaining power, change in job functions and also flexibility in working hours.


Globalization has brought privatization in Tanzania which had both positive and negative effect on employee relation. National bank of commerce in Tanzania was privatized in 1997 to a South African company called ABSA group limited. This act had a major impact on employee relation as employees' were significantly affected by the move. Also privatization change the way banks are governed which might lead to retrenchment of some employees or the way employees conduct their duties.

Increase opportunity

Banks choosing to go global will be to increase their chance of serving an extended market as result strengthens employee relation. Employees will be able to be recognized and rewarded if the bank is performing tremendously well. Educated employees in Tanzania will be able to compete in global market and have a choice in occupation than ever before. Additionaly, workers have a choice of immigrating to other foreign banks such Barclays bank Tanzania which is from UK.

2.2.3 Technology transfer

Transfer of technology from developed countries has tremendously affected employee relation in banks. Banks in Tanzania are now transferring technology from foreign banks that have proven success. For example CRDB Bank and other banks are now having system that aim to reduce customer queuing for longer period and also serving customer who enters the banks first- (first in first out). As a result of technology transfer, skilled employees can get a chance to better their aptitude on newly installed systems. However, new technology will affect other banks employee relationships as employees could be easily be downsized hence Employee relationship management will affected and will have to adjust.

2.3.0 Other effects of globalization on employee relations

International competition will result to increased wage rate disparity for unskilled bank workers and also increase the level of unemployment. Foreign banks coming to be situated in Tanzania will either increase or decrease unemployment rate, since they will either have to come with procedure and standard from back home hence affecting the local employees. Foreign banks might import their paying standard to the host country and generally change the whole working culture of the banks.

As mentioned above that liberalization on economic will also impact employee relation by increasing salary inequality. Employee relation will have to improvise on this issue so that all employees are equally paid depending on their job position. This scenario occurs when as job losses in uncompetitive industries outperform job opportunities in a new industries such banking industry.

Employees in banks will have to accept the worsening salary hence the employee relationship management will be affected as employees working ability will go down hence influencing the banks output in serving the customers.

The country ability to regulate economic activities is low as capital is increasingly mobile hence affecting banks in Tanzania.

The effect of globalization have tremendously influence third world countries employee relation. Banking industry has had mix outcome due to globalization i.e. some factors have worked in favor and some have negatively influence the performance. Banking sector is globally connected somehow, so global standard of employee relation will be also applied in Tanzania banking industry. With new technology still coming to Tanzania banking industry employee will still be affected and unless banks improvise the negative impact will still hit.

3.0 Banks recognizing the Union

Although trade unions aim to watch on the interest of their members, they can also work together with employer because a successful business is good for the employees and therefore its also good for the union. Trade unions not only represent the workers but also in similar related organizations. After banks have recognized the union such TUCTA a collective agreement will be signed, this is a law enforcer to all parties that are involved in the agreement. Banks will then have to disclose information to allow bargaining process to take place. While other collective agreements are meant to strengthen relationship between banks and the trade unions, other can just be voluntary agreements that inform on workplace issues and business in general.

4.0 Employee relation working with unions

To bring absolute impact on banks performance management should not think unions are such a hindrance to accomplishing organizations goals. Research has proven that unions can bring positive impact on organizational competitiveness by facilitating mutual impressive work practice.

Employee relationship management and unions work together to try and minimize the conflict that may arise in the organization. For Tanzania most banks are not government owned hence the unions have less power to change but they can only raise the voice on certain issues affecting employees. But both unions and employee relationship management are aim for the survival of the organization so the unions have to handle with care. In the case of Tanzania employee enjoy the service from Trade Union Congress of Tanzania (TUCTA) and International Confederation of Free of Trade Unions (ICFTU).

5.0 How to handle trade unions using approaches

To handle trade unions in sensitive way for the good of organization (banks), they should be a good leadership approach from the banks to tackle issues that can involve trade unions. These approaches that banks can instill in their structure include:

Unitarist approach

On this approach both banks and trade union tend to work together to ensure that their employees and client respectively perform well to sustain the banks existence. The main focus on both parties is to gain mutual benefit and have good working environment. But this approach is criticized that it does not favor unionism however it give management power and disregard the varied interest on employment. So if banks chooses to take this approach it should be aware of the critics that the approach will bring hence try to find a better approach that will give consideration to all parties that are involve in employee relationship management.

Another suitable approach that Tanzania banks should undertake if there need is Pluralist approach. This approach shows a gap between the union and banks in other words the approach see the union and organization in at different ends a lot of compromises are expected on this approach.

Marxist approach

This approach treat trade union as "both a logical employee reaction to capitalist exploitation" and see employees as part of political move that can bring about change in the society.

Adversarial approach

This is threatening approach that can result to even greater financial loss and business shutting down if the problems experiences are not resolved fast enough. In case the negotiation fail the bank should take appropriate measure to tackle the problems for example taking the matter to the tribunal before the banks can experience further problems.

6.0 Agreements, rules and regulation

Employment relations should well be governed by rules regulation and agreement as this seems to be the outcome of employee relation. The rule should base on the group of employees or as result of bargain between individual (employee) which will result to personal contract

7.0 Prospect management styles in Banks relating to employee relation

It may seem external constraint are important in employee relation policy formulation but internal ones are almost the crucial elements. Management style can be very significance in determining employee relation policy and can be affected by factors that determine management style which are ownership, location and organization size. For example CRDB bank of Tanzania size is very wide hence affecting the management style so is the ownership of the bank. (John Gennard and Graham Judge 2005)


This type of leadership sees employee relation as unimportant. Although policies and procedure exist, due to agreement that has been made or any other related legislative necessity eg grievance and discipline. As result problems that arise will not be given first consideration until something goes absolutely wrong. This type of management approach will much affect banks that are small or starting hence they do not have a wide and long organization structure. Complaints of unfair dismissal are common in these small banks and often the employer becomes the victor as banks are privately owned.


Management style is being determined by local incident. The question lies whether to determine trade union or not, or to what level did employee involvement promoted.


In this approach organization share characteristics of ownership and size with the authoritarian type, but tend to be much positive attitude towards their employees. Employee consultation is given first consideration irrespective of whether trade unions representative are available at workplace.

8.0 Influence of management style in banks in Tanzania

Management style should not be taken lightly especially in organization such banks where every employee has a part to play for success of the business. If management approaches do not match the standard the bank will be in disarray as everyone is not sure not sure on what to do. Employee relations should careful chooses the appropriate approach that can be conducted to handle trade unions. In the case of Tanzania, many banks are privately owned therefore the extent to which trade union can stretch their power is much less. As result of private ownership of many Tanzanian banks the management approach that can be seen is authoritarian. Trade Union Congress of Tanzania (TUCTA) has less effect in most of the banks as employee relation in most of these banks is one side. The only possible bank that TUCTA hand could stretch is Tanzania postal bank which was amended by act no.12 of 1992.

9.0 Improving employee relation

Arguably, many banks want to improve the relationship with their employees so that they retain their best employees hence improve banks profitability. So any bank wanting to improve or has succeed in improving employee relation the following factors should be presented.

Most employees have expectation on management of fair and just treatment on their jobs. Therefore the management should treat all the organization employees equally and treat them with equally fair manner. Employees should not feel that the company is practicing employee favoritism. As this will encourage other employees feel left out to the whole business process and the bank's achievement.

Employees' task or job should feel interesting. Most employees get the morale of doing a job which is not monotonous. Similarly if banks should try to make the job increasing challenging so that employees can see the job as a learning process. Banks procedures can keep on changing so employees would need to be trained to be at the same page with the new procedures. Assigning employees with responsibility will increase performance of the banks as customer will try to live with expectation.

Also the most encouraging way to improve employee relation is to have continuous interaction with the employees. Interacting with employees does not only mean meeting with them face to face but also giving updates on what is going on in the organization. Employees should be informed on new procedure, policies and the decision that have been made concerning the employees. Banks which has been having such strategy to improve employee relation will surely increase its competitive edge. A well informed employee will always make good decision that will be beneficial to the banks as he/she has all the information to present to stakeholders such as customers. Over friendly relation is harmful to the banks wanting to achieve their objectives hence the employer should build good rapport with the employees i.e. employees should feel welcome and comfortable when talking to manager or supervisor rather than letting fear taking its toll on their performance.

After employees have been able to reach the target or responsibilities that organization had assigned to them, they should receive recognition and rewarded accordingly. This is a way of boosting employees' morale for the next task. Recognizing and rewarding employees' effort for doing their responsibilities in an orderly manner will encourage other employees to even work harder themselves to compete for recognition.

Banks should encourage employees to give feedback. The feedback will help employer to know the concerns and problems that employees are experiencing. Banks that encourage feedback from employees can get views that would bring innovation to the organization. Also the employer would be able to get know what employees think about the company.

Competitive salary should also be on the agenda of the employer. Employees should feel that they being paid fairly for their competence, skills and aptitude.