Assessment of Formal and Informal Institutions Affecting Employees Rewards for Enhancing Performance among Higher Learning Institutions in Arusha, Tanzania.

Kessy, Aquiline D. (2020) Assessment of Formal and Informal Institutions Affecting Employees Rewards for Enhancing Performance among Higher Learning Institutions in Arusha, Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

This study assessed formal and informal institutions affecting employees’ rewards for enhancing performance among higher learning institutions (HLIs) in Arusha, Tanzania. It was guided by three specific objectives pertaining to identifying formal and informal institutions governing employees’ rewards, examining the role of these institutions in rewarding employees for enhancing performance and examining the strength of these institutions in governing employees’ rewards. A multiple cases study design was adopted by involving five HLIs in Arusha with a population of 287 administrative staff from which 167 respondents were selected using a purposive sampling method. Research data was collected by administering structured survey questionnaire and analysed by descriptive statistics and correlation with the aid of STATA program version 11.2. The findings showed that both formal institution and informal institutions existed among HLIs as agreed by 97% and 68.7% of the respondents respectively. Further, this study showed that formal and informal institutions had great role in employee rewards and both revealed existence of strong positive correlation with enhancing employees’ performance, which was represented by Spearman’s correlation coefficients of 0.5093 and 0.5642 respectively. Moreover, the strengths of formal and informal institutions was high and showed very strong positive correlation and slightly weak correlation with enhancing employees’ performance at the Spearman’s correlation coefficients of 0.8093 and 0.4642 respectively. Keyword: Formal and Informal Institutions, Employee rewards, employee Performance and Higher learning Institution

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