Dissertation Submitted to School of Public Administration and Management (SOPAM) in Partial Fulfillment of the Requirements for Award of the Masters of Public Administration (MPA) of Mzumbe University (MU)-TanzaniaAmong the key challenge which health Institutions face emanates from the management of human resources. The use of human resources is of particular significance because majority of the important assets of any institution and the successful implementation of any strategic objective rely much on the encouragement and hard work of the staff. While claims of employees’ dissatisfaction are heard, little is known about what actually is likely to satisfy health research employees most. This study sought to examine job satisfaction on employees’ performance at Ifakara Health Institute-Tanzania. The study was guided by three research objectives such as: To examine the prevailing factors influencing job satisfaction at IHI, to examine the effects of job satisfaction on employees’ performance at IHI; and to examine the challenges faced by IHI to satisfying their employees. The study employed a case study research design to arrive to the above research objectives and that Ifakara Health Institute was selected as the area of the study. The study used both primary and secondary methods of data collection to collect data. The data collection tools used include questionnaire, interview as well documentary review. The sample consisted of 94 respondents with 86 questionnaires’ respondents randomly selected from IHI employees and 8 interview respondents purposively selected. Quantitative data were analyzed and presented using simple descriptive statistics through tables, frequencies and percentages while in a qualitative data have been analyzed and presented using themes and sub themes developed basing on objectives. The findings indicate that the employees of Ifakara Health Institute were lowly satisfied in their job. Their job satisfaction was affected by factors such as job security 83.7%, reward system management 80.2%. These factors in reverse emerged as issues employees considered important and that would likely make them to perform well. Further, the study found that if employees are dissatisfied in their job it can lead to poor performance, losing working morale and lead to absenteeism and turnover. Likewise the study indicated that short term projects, implementation of performance feedback and delays of payment are the major challenges facing IHI in satisfying the employees. Therefore, it is important to improve job security through project resources complementation, decentralization authority to approve the staff financial requisition of payments at branch levels, adjustment of reward management system to reflect the status of employees and the socio-economic situation prevailing in our societies and conducting performance feedback for the work done as most of the employees seem to be happy in knowing if their contribution to the Institute is meaningful and recognized.