The Effect of Financial Rewards on Employee Commitment at Kinondoni Municipal Council, Dar es Salaam, Tanzania

https://doi.org/10.51867/ajernet.5.4.21

Authors

Keywords:

E-Feedback System, Employees’ Working Efforts, Reward System, Public Sector

Abstract

This study was carried out to find out the effects of reward system on employees commitment in public sector in Tanzania based on Kinondoni Municipal Council. The specific objective of the study were to determine effect of financial rewards on employees’ working efforts at Kinondoni Municipal Council. The research drew from expectancy theory and Herzberg’s Two Factor theory to guide its direction, while a conceptual framework was constructed to illustrate the connections between the variables under investigation. Employing an explanatory research design, the study opted for a combination of simple random and purposive sampling methods to recruit 118 participants from the target population of 2500 staff. Both questionnaire and interview were used to gather data from the respondents. Data that were gathered through questionnaire were analysed using descriptive and regression analysis while data that were collected through interview were analysed using content analysis. It was revealed that organisation overtime pay offered by staff adequately reflects the extra effort put into work while employees have a pension plan makes them feel more secure about their future, which allows employees to focus better on their work.  The study concludes that reward system, fringe benefits and recognition schemes have significant effect on employees’ working efforts at Kinondoni Municipal Council.  It was recommended that there is a need to ensure that employees receive competitive salaries which attract and retain top talent at Kinondoni Municipal Council. This policy implication can lead to increased job satisfaction, motivation, and commitment among employees.

Dimensions

Bernard, K. L. (2018). Strategies to Reduce Voluntary Employees' Turnover in Business Education. PhD Thesis. Unpublished. Walden University.

Birhanu, A. (2022). The Effect of Financial and Non-Financial Rewards on Employees' Motivation. The Case of Ethiopian Construction Design and Supervision Works Corporation (A Master Degree Thesis, St. Mary's University).

Gohari, P., Ahmadloo, A., Boroujeni, M. B., & Hosseinipour, S. J. (2013). The relationship between rewards and employee performance. Interdisciplinary Journal of Contemporary Research in Business, 5(3), 543-570.

Hatice, O. (2019). The Influence of Intrinsic and extrinsic Rewards on Employee Results. An Empirical Analysis in Turkish Manufacturing Industry. Business and Economic research Journal, 3(3), 29-48.

Hokororo, A. (2020). The effect of reward system on employee performance in public organization: A case of Rombo District Council. Journal of Public Administration and Governance, 8(2), 112-129.

Hussain, S. D., Khaliq, A., Nisar, Q. A., Kamboh, A. Z., & Ali, S. (2019). The Impact of Employees' Recognition, Rewards and Job Stress on Job Performance: Mediating Role of Perceived Organization Support. SEISENSE Journal of Management, 2(2), 69-82. https://doi.org/10.33215/sjom.v2i2.121 DOI: https://doi.org/10.33215/sjom.v2i2.121

Kamselem, K.M., Nuhu, M.S., Lawal, K.A.A., Liman, A.M., & Abdullahi, M.S. (2022). Testing the nexus between reward system, job condition and employee retention through intervening role of employee engagement among nursing staff", Arab Gulf Journal of Scientific Research, 40(1), 34-53. https://doi.org/10.1108/AGJSR-05-2022-0061 DOI: https://doi.org/10.1108/AGJSR-05-2022-0061

Kefale, H. A. (2019). The impact of rewards on employee performance in the Ethiopian banking industry: A case study of ABAY Bank S.C. Journal of Business and Administrative Studies, 11(2), 89-105.

Kumburu, N. P. (2020). rewarding employees for organisational performance: does financial incentives matter in the 21st century for tanzanian employees? Journal of Co-Operative and Business Studies (JCBS), 5(1), 34-37.

Milne, P. (2007). Motivation, incentives and organisational culture. Journal of knowledge management, 2(1), 34-54.

https://doi.org/10.1108/13673270710832145 DOI: https://doi.org/10.1108/13673270710832145

Mitsakis, M. and Galanakis, M. (2022) An Empirical Examination of Herzberg's Theory in the 21st Century Workplace. Organizational Psychology Re-Examined. Psychology, 13(7), 264-272. https://doi.org/10.4236/psych.2022.132015 DOI: https://doi.org/10.4236/psych.2022.132015

Owuor, P. A. (2017). Influence of the reward system on employee performance in the insurance industry in Kenya (Master's Research Project, Maseno University).

Robles, A. S. (2018). Influence of Employee Benefits on Employee Satisfaction: A Case of Five Stars Hotels in Nairobi (Doctoral dissertation, United States International University-Africa).

Semgaza, J. M. (2022). The influence of Non-Monetary Rewards on Employees Performance: A Case of Tanzania Cement Company (Master's Dissertation, Institute of Finance Management).

Vroom, V. H. (1964). Work and motivation. San Francisco, CA: Jossey-Bass

Wanjiru, M. S. (2017). Influence of financial and non-financial incentives on employee's job performance at Equity Bank Limited, Mount Kenya Region, Kenya (Doctoral Dissertation, Kenyatta University).

Published

2024-10-21

How to Cite

Millinga, O., & Barongo, F. (2024). The Effect of Financial Rewards on Employee Commitment at Kinondoni Municipal Council, Dar es Salaam, Tanzania. African Journal of Empirical Research, 5(4), 253–261. https://doi.org/10.51867/ajernet.5.4.21