Human Resource Management in Multinational Banks in Tanzania
Realization of effective management of operations and resources in the financial institutions is a dream for most organizations globally. Providing services that aim at meeting consumer needs becomes a key determinant that influences the realization of the stated objectives. In specific, providing services that empower the employees ensure the realization of the planned objectives as it creates the desired organizational culture of excellent performance. Analysis of different companies shows that the variance in the performance arises from the manner in which operations are managed (Wilkinson, 2009). Therefore, the following analysis compares and diagnoses the management of human resources of two multinational banks in Tanzania. The analysis illuminates the light into the different factors that influence effective management of operations in an organization.
Major issues that work against the concept of performance management
Analysis of the case study reveals different issues in the two financial institutions that work against the concept of performance management. Effective performance management relies heavily on the recruitment and selection process adopted by the organization. However, the recruitment and selection process used by the South African bank jeopardizes the realization of the strategic objectives of performance management. The bank uses internal referrals as their method of recruiting and selecting the required employees (McNett, 2005). The process diminishes the realization of the desired objectives of performance management as it increases the risks of bias in the selection process. Training is an essential component that promotes the realization of the desired objectives of performance management. However, the South African Bank has an infrequent habit of emphasizing the need for the provision of training opportunities to the employees. Lack of regular provision of training opportunities prevents the establishment of the desired organizational culture and quality performance (Beamish & Newenham-Kahindi, 2007).
Recognizing employee contribution to the organization also contributes to the realization of the desired strategic objectives of the organizational performance management. However, the South African Bank does not consider equality in promoting its employees. The bank uses age as a determining factor when promoting its employees. In addition, cultural sensitivity ensures the realization of the planned organizational objectives. The sensitivity ranges from organizational language to behaviors that strengthen the culture within the organization. However, the American Bank fails to recognize the importance of cultural sensitivity as it adopts communication-specific culture that does not consider the needs of the local Tanzanians. The lack of the employees' trade unions as evidenced by the American Bank shows its inability to sustain organizational performance.
Factors supportive of implementing performance management
Diagnosis of the company shows that different activities contribute to sustaining its performance management. The two companies adopt the use of technology in communication and execution of its activities to ensure sustained performance and competitiveness. Case analysis shows that the institutions use technology in different departments such as communication departments to speed the flow of information and ideas. The use modern electronic systems in facilitating their transactions also attest to the efforts adopted to ensure performance management. In addition, case analysis shows that the two banking institutions employ experts that provide training opportunities to their employees across the state. Providing employees with training opportunities, strengthen the desired organizational culture alongside instilling them with knowledge and skills for executing their assigned duties.
The centralized systems of governance used by these banking organizations also attest to the sustained performance management in the banking industry in Tanzania. Centralized system of leadership ensures that the employees have a defined method of raising their concerns and hierarchy that provides directions related to the management of operations. The systematic organization of the work system in these banking institutions also contributes to their effective performance management. The systematic organization in the work system evidenced by standardization of their working system, interconnected communications, and the introduction of best practices to strengthen their human resource management practices contribute to performance management in the company (McNett, 2005).
In addition, the provision of trade unions for the South African Bank employees also attests to the activities adopted to ensure sustained performance management. Other activities that signify the efforts of the company to ensure performance management includes regular surveys to the head offices of the organizations, transferring corporate culture from their headquarters, and recognition of employee contribution to the success of the organizations (Wilkinson, 2009).
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