Skip to content
Research Article Open access CC BY 4.0

The Role of Financial Incentives on Employees’ Performance in Tanzania: A Case of Iringa Municipal Council

Suzana John Mfikwa, Blandina Kisawike, Bahati Golyama

Asian Research Journal of Arts & Social Sciences · pp. 129–140 · Published 15 Sep 2022

10.9734/arjass/2022/v18i330349

Abstract

Employee motivation and reward are common concepts that are widely practised in many organisations. Among such rewards are financial incentives, rewards given to employees as part of an organization’s strategies to boost performance and motivation.  While the role of financial incentives on employee performance has widely been investigated in many organisations, not as much research has been done on the same in Tanzania. The present study assessed the role of financial incentives on employees' performance at Iringa Municipal Council in Tanzania. The study employed a quantitative research approach and a randomly selected sample size of 339 employees out of a total population of 2,215 employees at the Council. The collected research data were analysed using descriptive and inferential statistics like multiple linear regression. The findings revealed a positive but insignificant contribution of financial incentives on employees’ performance in Iringa Municipal Council. For instance, financial incentives contributed to about 52% of the variations in employee performance (β = .529), but the contribution was statistically insignificant (p = .127). This demonstrates that there could be other factors that drive employee performance at Iringa Municipal Council, and different approaches are required to enhance the employee’s performance. The study recommends that further studies should focus on assessing the contribution of incentives to employees’ performance in other types of local government, such as rural and district councils, as well as central government institutions.

Financial incentives monetary incentives employees’ performance Tanzania

References (21)

  1. 1 Motivation and personality [DOI]
  2. 2 Research Design: Qualitative, Quantitative, and Mixed Methods Approaches [DOI]
  3. 3 Statistics, an Introductory Analysis. [DOI]
  4. 4 Do Psychosocial and Study Skill Factors Predict College Outcomes? A Meta-Analysis. [DOI]
  5. 5 On the Folly of Rewarding A, While Hoping for B [DOI]
  6. 6 Missing the boat or sinking the boat: a study of new venture decision making [DOI]
  7. 7 Organizational Capability Model: Toward Improving Organizational Performance [DOI]
  8. 8 Effects of Monetary Incentives on Teacher Turnover: A Longitudinal Analysis [DOI]
  9. 9 ORGANIZATIONAL CULTURE AND EMPLOYEE PERFORMANCE
  10. 10 Reward type and performance: An examination of organizational wellness programs [DOI]
  11. 11 IMPACT OF MONETARY INCENTIVES ON EMPLOYEE’S MOTIVATION: SHINAS COLLEGE OF TECHNOLOGY, OMAN - A CASE STUDY [DOI]
  12. 12 Incentive Package, Employee’s Productivity and Performance of Real Estate Firms in Nigeria [DOI]
  13. 13 The Impact of Financial Reward on Job Satisfaction and Performance: Implications for Blue Collar Employees [DOI]
  14. 14 Reflections on the conceptualization and operationalization of a set-theoretic approach to employee motivation and performance research [DOI]
  15. 15 The Effect of Monetary Incentives on Individual and Organizational Performance in an Italian Public Institution [DOI]
  16. 16 Financial Incentive as a Yardstick for Employee Performance: The Case of University of Nairobi [DOI]
  17. 17 Incentives as correlates of employees loyalty towards management in organisation [DOI]
  18. 18 Does Monetary Incentives Have Stronger Influence on Workers' Productivity Other Than Any Form of Motivational Incentives? [DOI]
  19. 19 Importance of Employee Motivation & Job Satisfaction For Organizational Performance
  20. 20 Effects of Incentives and Rewards on Employee Productivity in Small Banks in Kenya: A Case Study of First Community Bank
  21. 21 Assessing the Effect of Motivation on Organizational Performance: A Case of MHS Massana Hospital, Dar es salaam Tanzania

Cited by 6

Performance-Based Incentives and Workforce Productivity in Small Enterprises

Yuanis Yuanis · Indonesian Journal of Innovation Studies · 2025

THE IMPACT OF FINANCIAL AND NON-FINANCIAL BENEFITS ON THE MOTIVATION OF PUBLIC SECTOR EMPLOYEES

I. Dikhaminjia, Natalia Kharadze, D. Pirtskhalaishvili · Financial and credit activity problems of theory and practice · 2025

Financial Incentives as the Key Driver of Employee Productivity

Yuanis Yuanis · Academia Open · 2025

Effects of Financial Incentives, Performance Appraisal, and Employee Recognition on Work Motivation of Start-Up Employee

Mariana Diah Puspitasari · International Journal of Business, Law, and Education · 2024

Showing 4 of 6 known citations — external sources report more than can currently be individually listed.

Related research

Article metrics

Real usage data collected on this platform.

27

Page views

0

PDF downloads

2

Outbound clicks

6

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.