The Impact of Privatization on Employees’ Quality of Work Life: the Case of Tanzania Breweries Limited and Tanzania Electricity Supply Company Limited
The study investigated how Privatization affected employees’ Quality of Work Life (QWL), taking queue of the Conditions of Work and Reward System dimensions. Case studies drawn from Tanzania Breweries Company Limited (TBL) and Tanzania Electricity Supply Company (TANESCO) were chosen; representing respectively, Public Private Partnership (PPP) and Management Contract modes of privatization. The study used a Qualitative research Design adopting the Rapid Assessment Methodology (RAM). The approach combined simultaneously the methods used in qualitative and quantitative designs in data collection, analysis and presentations. A sample study (n =340) was targeted, in which (n =246) responded accounting for response rate of 72.5%. Data were collected from TBL branches in Arusha and Dar es Salaam, while TANESCO’s branches in Arusha, Dar es Salaam, Ilala, Kinondoni and Morogoro Kidatu Hydroelectricity power generation station, were covered. The findings revealed significantly positive impact on employees’ QWL, with regard to Conditions of work attributes of organization of work, health and safety and supervisors – employees’ relationships. On the negative side, conditions of work became more precarious, characterized by heavy work load, stress, and tight work schedules. On compensation, the study revealed positive results with regard to pay structures and components, better services accessed to some employees post privatization and involvement in pay and benefits negotiations. On the negative side compensation had created high income differentials, pay inequity and unfairness and lack of some services hitherto accessed to some employees. It was not possible to draw robust conclusions that linked QWL exclusively with privatization, but with several other factors including the nature of the organization, the style and philosophy of management, the individual’s position in the organization and nature of business. The implications of the findings pointed to the necessity for managers to formulate HRM friendly policies and practices that would further both the interests of the organization and better employees’ QWL. The study recommended for a study along the same lines with a much larger sample of organizations and covering wider
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