The Influence of Reward and Recognition Strategy on the Performance of Local Government Authorities (LGAs) in Tanzania

Abstract

The study examined the impact of reward and recognition strategies on the performance of Local Government Authorities (LGAs) in Tanzania, where, despite some reforms in the public sector, the problems of motivation are still experienced by the staff of these institutions. A convergent parallel mixed-methods design was used to collect data from 231 respondents across 10 LGAs in the Northern and Southern Highland Zones, using questionnaires and key informant interviews. The quantitative analysis using STATA showed that all three variables of incentives (β = 0.421, p = 0.000), recognition (β = 0.389, p = 0.000) and number of incentives (β = 0.276, p = 0.000) had a positive and significant relationship with LGA performance, with the regression model explaining 61.0% of its variation (R² = 0.610, F = 102.56, p = 0.000). The number of incentives had the greatest moderate impact, and incentives had the strongest. Results from the qualitative analysis revealed challenges associated with inconsistent implementation, late disbursement, non-existent formal recognition systems and unequal reward distribution. The study concludes that effective reward and recognition systems play an important role in improving employees' incentives, accountability and efficiency of delivering services in LGAs. It suggests giving monetary incentives in a timely and transparent way according to clear performance criteria, formalised rewards and recognition programmes (e.g., verbal praise, certificates, employee of the month) and implement a mix of monetary and non-monetary rewards (e.g., training and career development). It recommends establishing clear policies and effective communication mechanisms to foster trust and understanding among employees. The overall findings show that well-structured reward and recognition policies are very effective in enhancing the performance of the organisation in the LGAs of Tanzania.