Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  3   Issue 1  2013  
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Article Abstract
An imminent of management contract of privatized enterprise in Tanzania
Keywords:  Management Contract, Privatization, achievement, constrain, Tanzania
Burhan Ahmad mtengwa , Maria Emanuel and Cuthbert Bonaventura Midala
Privatization process entails on increasing efficiency and effectiveness on the provision of goods and services on parastatal organizations to meet customers' satisfaction. This study analyzed the imminent of the management contract of privatized enterprises in Tanzania, the study is guided by the assumption that, the government introduced management contract as a solution to the declining parastatal organization, whether management contract proved success or failure is explored by this study. The study employed a case study design to explore the respondents' perceptions and views on the subject. It used both qualitative and quantitative approaches in data collection, interview and questions were used as the instruments for the data collections. The collected informations and data were analyzed by using statistical package called (SPSS) The main findings of the study were as follows; first, most of the respondents argued that, the management contract in Tanzania proved failure. Moreover, About 75% of the respondents disagree with the statement that, privatization through management contract led to an increase of the employment opportunity. Also, about 70% of the respondent disagree with the statement that, labour disputes have decreased after hiring management contract in the country. Moreover, the study findings showed that, inefficiency in services delivery, increase in production, use of modern technology, short time delivery and unimproved quality of goods produced were among challenges faced management contract. The study concludes that, although management contract were encouraged in Tanzania, the people of Tanzania feel that, they are degraded and disrespected by employing foreign workers on the job that they would perform. Employees are also not motivated; they work under pressure and great fear only to ensure that contractors' goals are met and customers' satisfactions are guaranteed. The study provided a number of recommendations as follows; the government should make clarification on the existing utilities and assure the public that, those utilities are for the well being of the public good and not for the foreigners' benefit.
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