Effects of Compensation on Employee’s Performance at Government Hospitals in Tanzania.

Kayombo,, Emilian (2024) Effects of Compensation on Employee’s Performance at Government Hospitals in Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

The study sought to examine the effect of examining the effect of compensation on employee performance at government hospitals in Tanzania. The case of Songea Referral Hospital. The study was guided by three objectives. to determine the effect of salary on employee performance at Songea Referral Hospital, to determine the effect of incentives on employee performance at Songea Referral Hospital and to determine the effect of benefits on employee performance at Songea Referral Hospital. A positivist philosophy was employed in this study. a quantitative approach was utilized while a case study design was employed as well. A sample of 161 was drawn from 270 Songea Referral Hospital using stratified sampling. structured questionnaires were used to collect data while descriptive statistics and multiple regression analysis were used to analyse data. The study found that salary motivation was positive and significantly related to Employee performance. Incentives were also found to be positive and significantly related to employees’ performance however benefits were found positive but weak significantly related to employee’s performance. Therefore, the study recommends the implementation of a systematic and transparent process for regular salary reviews. This ensures that employees' compensation stays competitive in the market and aligns with their skills, experience, and contributions to the organization. Secondly To ensure that incentive programs are closely aligned with the hospital's strategic objectives. Lastly, it is recommended that to enhance health and wellness benefits by providing comprehensive programs that address both physical and mental health. Key Words: Compensation, Salary, Incentives, Benefits, Employees Performance

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