Effect of Compensation On Employees Performance in Public Health Sector: A Case of Mbulu Town Council.

Chiwanga, Joseph Dominic (2021) Effect of Compensation On Employees Performance in Public Health Sector: A Case of Mbulu Town Council. Masters thesis, The Open University of Tanzania.

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Abstract

The study determined the effects of compensation on employees’ performance in the public health sector in Mbulu town council. The study used three objectives namely, to find out how extrinsic rewards have effects on employees’ performance, to determine how intrinsic rewards have effects on employees’ performance and to examine how feelings of equity have effects on employees’ performance. Also the study addressed three research questions, namely: How extrinsic rewards have effects on employees’ performance, how intrinsic rewards have effects on employees’ performance and how feelings of equity have effects on employees’ performance. The study was conceptualized on two main theories namely Equity theory and Herzberg two factors theory, methodology adopted was quantitative. The population comprised 240 public health employees in Mbulu town council. Sample size of 150 participants was chosen using systematic random sampling. Data were collected using structured questionnaires. Data were analysed using descriptive statistics and simple linear regression analysis. Finding from the study revealed that there is moderate positive linear relationship between compensation and employees’ performance. The main conclusion drawn from the study addressed that compensation is significant tools to improve employee performance. It was recommended that recommends that the government and other stake holders should revise the current salary scale, also organization should adhere to rules and regulations when dealing with employees’ affairs, on top of that organization were advised to recognize the outstanding performers. In connection to that equity should be considered in distributions of extrinsic and intrinsic rewards. Keywords: Compensation, Employees Performance, Public Health Sector, Compansation

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