Professional Documents
Culture Documents
DODOMA
STUDIES
BY
JULY, 2019
1.0 INTRODUCTION
The study will examine the effects of non-financial rewards on employee performance.
Non-financial reward is simply the internal feelings of satisfaction, growth, autonomy and
management which attracts and retains talented employees by motivating them to perform
well, (Markova & Ford, 2011). Reward management system is one of the most
In the world today, every organization is working towards ensuring high performance.
Psychologists have found out that non-financial rewards can be more powerful motivators
than an external reward system like employee bonus programme, (Armstrong, 2010).
stated that in olden days workers were paid based on the piece rate, time rate where one
would be paid according to the work he or she has accomplished in a given time. In later
work place. Reminds that the human relations approach treats people as human beings
In modern world a lot has changed in the work place with more emphasis on promoting
pay and other benefits. (Robert, 2003), also argues that there is need to meet and
introduce more motivating ways to meet employee’s needs in the organization. Reward is
achieved in many ways including cash and non-cash based rewards and awards. During
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his or her career. According to Allen et al. (2011),it comprises achievement, challenge,
praise from supervisors and co-workers, personal satisfaction, feeling of self-esteem, self-
discernment, creativity, opportunity to use one’s skills and abilities, efficient feedback.
Reward is therefore, all the economics and psychological benefits supplied by the
Bennell and Acheampong (2007) observe that relationships between many African
governments and teachers are strained and turning sour. The teachers as a group have
union leaders have also been imprisoned and tortured; examples are Burundi, Zimbabwe
Barclays Bank Kenya Limited (2008), reward schemes have also been used to ensuregood
October 2006 to support good governance and great leadership in Africa. Its main aims
are to recognize excellence in African leadership and also to provide a practical way in
which leaders can build positive legacies when they leave national office. The foundation
I also meant to stimulate debates on quality of governance and major governance issues
Foundation, (2006).
United Republic of Tanzania through the Public Service Reforms Programme, has
recognized the importance of pay and incentives in the process of improving public
service delivery by adopting a medium pay policy. The government inserted various
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sections in Public Service Act No 8 of 2002 and its Public Service Regulation of 2003 as
well as Standing Order for Public Service, 2009 to allow provision of subsistence
allowances, disturbance allowances, paid leave and other terminal benefits to public
servants. However, most employers in Public Service Organizations give less attention on
Non-financial rewards is internal to the person in that it is something that you have to
offer yourself and is driven by personal interest from employment (Nongo, 2005).
According to Boeuf (2010), the only way the employees will fulfill a dream is in sharing
it. Above all, reward schemes provide mechanisms for this to happen. Likewise, you get
more of the behavior you reward. You don't get what you hope for, wish for or beg for.
You get what you reward. Reward and incentive systems are therefore fundamental in
developing capacities and translating developed capacities into better performances says
(UNDP, 2006).
According to Luthans and Peterson (2002), there are two basic types of rewards, which
are extrinsic and non-financial. Extrinsic reward (also known as financial or tangible or
financial) on the other hand, is a psychological reward that employees get from doing
meaningful work and performing it well. Non-financial reward is simply the internal
during his/her career. It is emphasized that employees need for recognition, self respect,
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growth, meaningful work, and social activities are as important as monetary incentives in
Despite of many studies have done on employee motivation, many researches based on
in public organization or sectors. This study intends to establish the relationship between
non-financial rewards and job satisfaction, to find out employees perception on the
reactions with regard to effort spent on their job where there are no rewards. Therefore
the researcher will conduct the study about the effects of non-financial rewards on
district council.
This study will be an input to management of Chamwino District Council to decide where
recommendations of this study will provide useful information to the Present’s Office-
hence contributing to knowledge and awareness. Furthermore, the study will be useful for
students and future researchers through knowledge contribution. More importantly, the
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study will be used as partial fulfillment of the award of Bachelor degree in human
The purpose of this section is to describe the objectives of the study. The general
1.4.1General objective
council
District council.
(i). What are the non-financial rewards given to employees at Chamwino district
council?
Recognition
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Opportunity for career advancement
Involvement in Decision
(ii). What are the determinants for provision of non-financial rewards at Chamwino
District council?
Management Style
Appraisal remark
Rewards scheme/policy
Job performance
Organizational commitment
Retention of employee
Turnover of employee
Absenteeism of employee
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1.6 Scope of the Study
the respondents will be all employees at the district’s head office. Population composed
all employees from thirteen departments and five units within the organization. The study
will cover to identify the non-financial rewards given to employees at Chamwino district
District council and to measure the relationship between non-financial rewards and
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2.0 LITERATURE REVIEW
This chapter provides information from several sources which are closely related to the
theme and the objectives of the study. The specific areas covered here are theoretical
This research will focus on employee motivation and therefore we shall examine few
hypothetical, conceptual and pragmatic principles forming the general frame for reference
for the field of enquiry. This study will be guided by Maslow’s hierarchy of needs theory,
really motivates individuals or gives them the drive to do something. He classified human
needs into a pyramid of five sections which he named the hierarchy of needs that
individuals go through in life. Based on Maslow’s hierarchy of needs, wages are highly
important and usually one of the most common motivators. They satisfy the immediate
necessities of men such as food, clothing and shelter. But what is really essential are the
needs found on the higher levels, and they are not associated with money (Gabriel, 2010).
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Hertzberg two-factor theory
factors are non-financial part of the job. He noted that the two factors are one-
some 200 engineers and accountants were asked to recall when they had experienced
satisfactory and unsatisfactory feelings about their job. Following the interviews,
Hertzberg’s team came to the conclusion that, certain factors tended to lead to job
satisfaction, whereas others led to frequently to dissatisfaction. The factors giving rise to
satisfaction were called motivators. Those giving rise to dissatisfaction were called
dissatisfaction is no dissatisfaction.
The most important motivators, or satisfiers are; achievement, recognition, work itself,
responsibility and advancement. Hertzberg pointed out that these factors were intimately
related to the content of work, with its non-financial challenge, interest and individual
responses generated by them. The hygiene factors are; salary, company policy and
distinction between the motivators and the hygiene factors is that whereas motivators can
bring about positive satisfaction, the hygiene factors can only serve to prevent
dissatisfaction.
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Despite such criticisms, the theory has had a considerable effect on the rewards and did at
least attempt on empirical approach to the study of motivation at work and job
satisfaction. Furthermore Hertzberg work has drawn attention to the importance of job
the satisfaction of employees (Jeffrey, 2008). (Donald & Sanjay, 2004) studied the
variables of job satisfaction commitment, job involvement and job characteristics. The
research study revealed that, financial rewards are not important in all situations.
Employees can have vastly different motives for acquiring wealth including using money
to fulfill psychological needs. Thus; it is not surprisingly that money alone is less an
effective motivator for employees than when it is used in conjunction with non-financial
However, in supporting Graham (2002), argued that, the reward should include monetary
and non-monetary components. He said that, remuneration does not simply compensate
employees for their efforts. It has also an impact on the recruitment and retention of
talented people.
A meta-analysis by (Denisi & Kluger, 2000) of 131 empirical studies that had tested how
well feedback interventions worked indicated a modest but positive effect of feedback on
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from managers and colleagues that acknowledge individual contributions and by
managers who listen to and act upon the suggestions of their team members. Other
actions that provide more recognition include allocation to a high profile project and
enrichment of the job to provide scope for more interesting and rewarding work.
and strategically alignment. The benefit of rewards are; enhancing the employment
relationship, flexibility to meet individual needs, helps to win the war of talents, through
that an organization can become an employer of choice and a great place to work, thus
poor implementation of systematic improvements is the main reason for functional failure
and barrier in the health sector in Tanzania along with poor personnel motivation. The
health sector in Tanzania has been undergoing major reforms and this research was done
with an intention to determine the degree of employee job satisfaction and to identify the
factors that caused low employee motivation since motivation is was cited as being part
of the reason for failure in the sector. The findings revealed that almost half of the
healthcare workers were not satisfied with their jobs due to low salaries; unavailability of
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the right job equipments and consumables, poor performance evaluation models used at
Many studies have done on employee motivation, many researches based on monetary
organization or sectors. Therefore the previous studies do not link the employee reward
preferences in relation to their specific needs and organization levels. However, most
This study intends to establish the relationship between non-financial rewards and job
on job satisfaction and to investigate employees’ reactions with regard to effort spent on
their job where there are no rewards. Also this study will address the issues of non-
financial reward with the specifically to Chamwino District council and this study is
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2.4 Conceptual Framework
The conceptual framework for this study has two variables: The independent and the
dependent variables with associate indication. This study assumes that employee
performance is the one that can be achieved when the effective application and
traits, represent dependent variables resulted from independent variables which are: Job
security, autonomy, opportunities, nature of the work, and sense of achievement and
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Independent Intermediate Dependent
Variable Variable Variable
Non-financial Reward
Types of Non-financial Organization Policy
reward Rewards Employee Performance
Determinants for provision scheme
of Non-financial reward
Relationship between Non-
financial reward and
employee performance
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3.0 RESEARCH METHODOLOGY
The study will be conducted at Chamwino district council in Dodoma region, the area of
employees. The researcher wants to find out if lack of non-financial rewards was the
Cross sectional research design will be used as it is a promising design for collecting data
of one or more group at one given point of time, Also it is the non-experimental research
design as it is useful and considered to have great degree of accuracy and precision in
social science research. The design is useful for descriptive purposes as well as
determination of relationship among variables at the time of the study. Cross sectional
measures simultaneously the exposure and health outcome in a given population and in a
given geographical area at certain time also is helpful in determining how many people
been affected by condition and weather the frequency of the occurrence varies across
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3.3 Data Types and Sources
Both the primary and secondary data types will be collected and then used for analysis.
Primary data will be gathered from respondents of the study, who are the employees of
Secondary data will be collected from documentaries review like reports of the
Chamwino District Council and other documents of the council based on effect of non-
3.4.1 Interview
Interview method for data collection will be used to obtain data from respondents by
using face to face based interview. The technique will be used because sample chosen
will be controlled more effectively. And also the researcher prepares questionnaire as the
This is method of data collection which involves reviewing and analyzing the contents of,
Chamwino district council performance reports and the contents of all other verbal
materials, which can be either spoken or written. Therefore, the use of this method will be
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3.4.3 Observation
In this method data will be collected through direct observation whereby the researcher
will undertake survey. In that case survey will be taken as a tool for obtaining information
whereby the researcher will go around and see how employees are being motivated by
non-financial rewards.
3.5 Sampling
Is the process or technique of selecting a representative part of population for the purpose
A sampling frame is the source material or devices from which a sample is drawn. The
study includes the total population of 98 people in head office who are employees of
Chamwino District.
The sampling unit refers to unit of reference or reporting . This study, the Sampling unit
Sample size of the study will be obtained from the total population 80 employees of head
office Yamane (1967) will be used as formula to get the sample size.
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Whereby;
n= Sample size
N
n=
1+ N ( e ) 2
98
n= =49 sample
1+ 98 ( 0.1 ) 2
The study will use both non probability and probability techniques
Simple random technique will be used to obtain data from employee of different
department and sections who are not in the managerial positions. Judgmental or purposive
included in the study in which the respondents are believed to be typical representative of
Researcher will be responsible to collect data and finding research permit from starting
sending application to the Chamwino district council to obtain permit for collecting data
at Chamwino District council head office, (Study Area). After been granted the
permission to collect data, then the researcher will carry-on with the task for at least three
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weeks then, followed with data processing, data analysis and data presentation which will
The data will be edited to detect errors and omission and thereafter coded prior to
analysis.
Qualitative data will be analyzed using content analysis technique narrative analysis,
discourse analysis and direct quotas. Computer software for statistical package for social
science (SPSS) version 20 will be used as a tool for help analysis of data particularly
quantitative data.
The analyzed data will be presented using, tables, figures and percentages, Word
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4.0 RESEARCH SCHEDULE OF ACTIVITIES
Writing proposal
and
Presenting
Data Collection
Analyzing data
Collected and
Writing report
Preparation and
presentation of
research report
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5.0 RESEARCH BUDGET AND SOURCE OF FUNDS
5.1 Budget size and breakdown
Amount/Item Total Amount
S/N Particulars Units (Tshs) (Tshs)
1 Pens 3 @200 600
2 Paper A4 1 ream @9,000 9,000
3 Note book 1 @5,000 5,000
4 Internet visiting 30 days @500 15,000
5 Pencil 2 @200 400
6 Ruler 1 @500 500
7 Transport cost Whole period 60,000 60,000
8 Meals allowance whole days @2,500 100,000
9 Printing costs Whole period 90,000 90,000
10 Photocopy costs Whole period 12,000 12,000
11 Binding cost Whole period 25,000 25,000
Data processing
12 and analysis cost Whole period 20,000 20,000
TOTAL 377,500/=
Source of researcher’s fund
The whole cost of the proposed budget which is Tshs. 377,500/= will be from
researcher’s own money.
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REFERENCES
Allen, R. S., Takeda, M. B., White, C. S. and Hemis, M. M. (2011). Rewards and
Bennell, P. and Acheampong, J. (2007). PSRP Education Sector Review In Sierra Leone.
Boeuf, M. (2010, September 8) Reward System. Business guide. Retrieved February 24,
Denisi, A., & Kluger, A. (2000). Feedback Effectiveness: Can 360 Appraisals are
22
Gupta G.B (2010) Management Theory and Practice. New Delhi: Sultan Chand and
Sons.
Herzberg ,F,Mausner ,B & Synederman B. (1959). The motivation to work. New York:
John Wiley.
Psychological
Markova, G., & Ford, C. (2011). Is Money the Panacea? Rewards for Knowledge
23
Robert, C. (2003). Organization Behaviors, 12th Ed, Pearson Prentice Hall. Studies, 7 (1),
pp. 31-39.
URT, (2002). The Public Service Act. Government Printer, Dar es Salaam.
URT, (2009). Standing Order for Public Servants. Government Printer, Dar es Salaam.
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APPENDIX I: QUESTIONNAIRE TO EMPLOYEES
Dear respondent,
My name is Ms. Khadija Yusuph Shabani, student at the Institute of Rural Development
Planning (IRDP) Dodoma taking a bachelor degree in Human resources planning and
degree’s study. This study is therefore designed to assess the effect of non-financial
information you provide is for the purpose of this study and will be kept confidential.
Your name will not appear with your answers. Only a summary of the results will be
published.
2 Age of respondents
i. 18-24year ii. 25-31year iii. 32-42year iv. 43-53year v. 54 above
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i. 1-2 years ii. 2-5years iii. 5 above years
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c) No
11. Does the sense of achievement used as non-financial reward?
a) Yes
b) I don’t Know ( )
c) No
12. Does the job security used as non-financial reward?
a) Yes
b) I don’t Know ( )
c) No
13. What are the non-financial rewards that you will prefer to be provided to
employee?
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
....................................................................................................................................
14. Does the difference in personal needs determine the provision non-financial
reward?
a) Yes
b) I don’t Know ( )
c) No
15. Does the nature of the job determine the provision non-financial reward?
a) Yes
b) I don’t Know ( )
c) No
16. Does the management style determine the provision of non-financial reward?
a) Yes
b) I don’t Know ( )
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c) No
17. Does the employee expectation determine the provision of non-financial reward?
a) Yes
b) I don’t Know ( )
c) No
18. Do the employee recognition practices determine the provision of non-financial
reward?
a) Yes
b) I don’t Know ( )
c) No
19. Do the reward policy/ scheme determine the provision of non-financial reward?
a) Yes
b) I don’t Know ( )
c) No
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21. Do non-financial rewards increase employee job performance?
a) Yes
b) I don’t Know ( )
c) No
22. Do non-financial rewards increase employee organization commitment?
a) Yes
b) I don’t Know ( )
c) No
23. Do non-financial rewards increase employee high retention of employee?
a) Yes
b) I don’t Know ( )
c) No
24. Do non-financial rewards increase employee low turnover of employees?
a) Yes
b) I don’t Know ( )
c) No
25. Do non-financial rewards increase employee low employee absenteeism?
a) Yes
b) I don’t Know ( )
c) No
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