Abstract:
Employee relations is one of the key fundamental elements of organizational performance,
prosperity and sustainability. Good employee relations results in a highly committed, motivated and loyal
employees in the organizations. The aim of this paper is to examine the effect of employee relations on
employee performance and organizational performance and at the same time identify various employee
relations practices used by small organizations in Tanzania. The study adopted a cross-sectional survey
research design and used a stratified random sampling technique to select a sample size of 387
respondents from selected small organizations in Tanzania. Data was collected using structured
questionnaires and interviews and analyzed using descriptive statistics and correlation analysis and the
results presented using tables. The findings of the study show that small organizations in Tanzania are
aware of the benefits of maintaining good employee relations and correct remedial actions taken to
minimize poor employee relations in the organization. The findings further indicate a positive significant
relationship between employee relations and employee performance as well as between employee
relations and organization performance. Moreover, the findings reveal the use of unfair labour practices in
small organizations in Tanzania. The study recommends that small organizations in Tanzania should
focus more on implementing fair labour practices and building effective and sustainable employee
relations that will ensure their growth and survival.
