The effect of monetary packages on job performance at Kinondoni Municipal council, Tanzania

Zuwena Abdalla; Felician Barongo; Twazidina Twaibu

doi:10.51867/ajernet.7.3.58

Authors

Zuwena Abdalla Mzumbe University, Tanzania
Prof Felician Barongo Mzumbe University, Tanzania
Twazidina Twaibu Mzumbe University, Tanzania

DOI:

https://doi.org/10.51867/ajernet.7.3.58

Keywords:

Herzberg’s Two-Factor Theory, Job Performance, Kinondoni Municipal Council, Incentive Systems, Monetary Packages, Tanzania

Abstract

This study examined the effect of monetary packages on job performance at Kinondoni Municipal Council (KMC), Tanzania. The study adopted a mixed-method cross-sectional survey design grounded in Herzberg’s Two-Factor Theory and Vroom’s Expectancy Theory. Stratified random sampling was used to select 351 respondents from a population of 2,847 employees, and 20 key informants were purposively selected for in-depth interviews. Quantitative data were analysed using descriptive statistics in SPSS Version 26, while qualitative data were analysed thematically using NVivo Version 12. The results showed that salary (73.0% agreement), allowances (76.9%) and performance bonuses (67.8%) have a positive effect on job performance. However, the impact of these financial rewards is seriously limited by delayed remuneration (68.7%), irregular bonus payment (65.2%) and unclear promotion criteria (41.6% dissatisfied). The study concluded that there is a strong positive relationship between the level of employee motivation and job performance, with 83.2% of respondents indicating that their motivation positively affects the quality of their work. Monetary packages are therefore key performance factors, but their effectiveness is undermined by implementation problems and structural disadvantages. It is recommended that KMC establish timely and transparent salary disbursement systems, introduce clear performance-based bonus systems, and build merit-based career progression systems to maximise the performance dividend of investments in monetary incentives.

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