Possible challenges faced by employee relation in banks Essay Example

employees may find their current occupation to be monotonous, resulting in decreased morale and negatively impacting the organization's performance. The turnover cost for many banks is high, including direct costs such as recruitment, selection, and training of new employees, as well as indirect costs such as reduced productivity, increased workload for remaining employees, and additional overtime expenses. To address employee relations challenges and reduce turnover, banks often provide training to make the job more interesting and challenging.

Banks that maintain a low rate of employee turnover are considered employee-oriented. They provide attractive compensation packages and hire individuals who are well-suited for the job. Regular interaction with employees is necessary for directors to comprehend their essential roles. Providing the necessary resources for tasks can enhance employee performance, and implementing reward systems can always boost employee morale. Employers should develop new strategies and provide practical advice for the success of banks. By collaborating with human resource management, employee relations can prevent conflicts by understanding and identifying the strengths and weaknesses of employees.

Employers should assign appropriate roles to employees based on their skills. In the case of team conflicts, employers should select a team leader who can effectively manage the pressure present among teammates. Banks should assess whether employees involved in conflicts are impacting the performance and productivity of the organization. Once the parties involved in the conflict are identified, it will be easier to resolve issues.

Enhancing motivation and morale

Establishing good employee relations in banks can increase motivation and morale. A motivated group of employees can achieve excellent results, which is beneficial for most banks.

Loyalty is enhanced

Many banks in Tanzania have created a

positive work environment for their employees, which helps to enhance motivation and morale. By avoiding factors that discourage motivation, a dedicated approach is necessary for the success of the business. These banks have successfully fostered loyalty among their employees by implementing effective procedures that align with their employees' needs.

Employees may be uncertain about what they can anticipate if they were to depart and work for another bank. However, a bank that dedicates resources to training its employees regularly can enhance their assurance and dedication. This can provide the bank with a competitive advantage, as engaged employees are less inclined to take sick days and have a greater understanding of their influence within the organization.

Minimizing Employee Attrition

By cultivating positive employee relationships and resolving concerns that contribute to attrition, a company can effectively decrease employee turnover.

Skilled employees who are not paid well may want to leave, but good employee relationship management will prevent this from happening. The employer will provide the employees with what they need because they are important for the company's performance. Employee relationship management would have saved the cost of recruitment and selection that would result from high employee turnover. Losing the most skilled employees to competitors is like giving away your own weapon to be used against you.

Introduction of efficient working practices

Dedicated employees would feel valued in their repetitive job every day. Monotonous work routine would decrease the employee's performance as they do not feel motivated enough.

Maintaining good employee relations in a bank is crucial for improving working patterns, increasing productivity, and efficiently utilizing resources by reducing waste. It also leads to improved commitment from employees, resulting in better service quality and

fewer rejections. However, failing to manage employee relations effectively can have disadvantages. Allowing unions to gain excessive power can undermine the bank's success as they would control key positions within the organization. By the time the company realizes this, it may be too late.

(Source: http://www.citehr.com/1324-advantage-maintaining-good-employee-relations.html#axzz1BRG1N0zU)

As we have learned, some trade unions advocate for political agendas in order to gain recognition for certain job issues. Therefore, employee relations should not only focus on influencing the fate of banks, but also strive for mutual interests among all involved parties. Banks that have established employee relations management may experience additional expenses from this department. Sometimes, employee relations fails to meet expectations and problems that should be addressed by this department continue to persist within the organization. The department is responsible for monitoring and resolving workplace challenges before they escalate and become disruptive to the organization. Thus, any failure to address these issues results in unnecessary costs incurred by the banks.

Single employer bargaining is costly due to the need to maintain centralized employee relations. Individual employer bargaining lacks flexibility, hindering accommodation of differences in production systems, service markets, labor markets, and technologies within centralized bargaining systems. Integrating new concerns into employee relations systems can also be challenging. Effective employee relations require highly effective communication within the company. If employee relationship management works independently, the level of management decision-making will increase, thereby reducing employee commitment to these decisions and local management.

David Farnham, on page 236, discusses how employee relationship management complicates labor cost control in workplace bargaining. This is because the bargaining process involves negotiations between management and union representatives, increasing the risk of unions gaining an advantage in

terms of pay and benefits. Additionally, management must assign skilled individuals with effective communication skills to counteract the union's attempts to control the outcome of the negotiations.

Conclusion

In this second part, we have analyzed the impact of employee relations on the banking sector in Tanzania, where there are few publicly owned banks that may be influenced by unions.

We have observed how globalization has brought both opportunities and challenges to the banking industry. One of the positive impacts of globalization is that it has encouraged the expansion of banking technology to other countries, such as Tanzania. However, this technological advancement also raises concerns about job security for employees. Banks implement new technology in order to reduce costs in the long run, which understandably creates anxiety among employees who are worried about their jobs. Furthermore, the essay also discusses the role of unions in Tanzanian banks. It reveals that there are very few banks in Tanzania that can be influenced by trade unions, as most of them are privately owned. The only trade union that employees can engage with is the Trade Union Congress of Tanzania (TUCTA), which provides support to employees, including those working at Tanzania postal bank.

The impact of trade unions on banking industry profitability is significant. Therefore, banks should develop strategies that effectively manage unions without negatively affecting organizational performance. Various approaches have been explored, including the Unitarist, pluralist, Marxist, and adversarial approaches. It is also important to establish and enforce agreements, rules, and regulations to govern employee relations and handle unions. It is evident that internal constraints are just as crucial as external factors for a company's success, and they should be effectively managed

using appropriate management styles. It appears that privately owned banks often employ an autocratic management style to address internal issues that affect the banks.

Other ways to handle employee relationships include timeserving and paternalistic approaches.

Recommendation

This is an important aspect of business, especially within the banking industry. Banks should prioritize employee relations as employees contribute to the success or failure of the organization. New innovative ideas should be introduced to simplify business processes and improve organizational performance. Collaboration between employee relationship management and human resources can facilitate the resolution of conflicts in a modern manner, even without involving trade unions.

The direction of employee relations should assess upcoming trends and conduct research on potential findings applicable in third world countries like Tanzania. It is important not to underestimate the impact of technology, as it will greatly influence the success of employee relations in the future. The perspective on employee relations must be flexible enough to tackle unresolved management issues. Employee relations should also aid in preventing avoidable problems such as unfavorable working conditions. Although labor unions strive to eliminate these issues, they can result in additional costs if not addressed promptly.

To boost employee motivation and loyalty, it is essential for employers to engage them in activities and decision-making. This involvement should encompass factors such as payment structure and other compensation packages, which are often highly valued by employees.