A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of the Degree of Master of Science in Human Resources Management (Msc. HRM) of Mzumbe University.In most of the developed countries it has been found that staff orientation programme has a significant impact in the organizational success: Staff retention or reduced labour turnover, staff productivity, organization performance, low supervisory cost, training, job satisfaction, job morale, promotion, development, recruitment replacement, employee pay and benefits. Also Tanzania Public Service Management and Employment policy support this requirement. An orientation programme is part of an organization’s knowledge management process and is intended to enable the new starter to become a useful, integrated member of the team, rather than being “thrown in at the deep end” without understanding how to do their job, or how their role fits in with the rest of the company. In Tanzania specifically in the Ministry of Labour and Employment staff orientation is done in inefficient and ineffective ways resulting into labour attrition, demotivation, and deterioration of customer care or services, dissatisfaction, and impression of the employment environment to the newly employed staff. The study aimed at investigating the employee orientation in the Public Service Institutions and its effects on employee performance and organization success. Therefore the main purpose of this study was: to identify challenges related to the implementation of orientation programmes and their effect on the newly employed staff in Tanzania and to suggest alternatives to orientation programmes under the current free labour market in Tanzania. A study was conducted within the Ministry of Labour and Employment and a total of fifty eight employees were involved in the study between May, 2012 and June, 2012. Out of this figure fifty employees responded to the distributed questionnaires and 8 employees did not respond. The response rate was 86.2 percent. The data were collected using distributed questionnaire, interview, observation, and documentary review methods. The study revealed that majority of staff were not initially oriented. The orientation programme or training for some staff was not programmed well, inconsistency and inadequate. All these led to dissatisfaction with the job from the first days of employment. Other orientation programs’ challenges included; shortage of funds to train new employees, declining of quality of work, increases recruitment costs, training costs, under utilization of new employees, lack of top management support to HRM Department in the organization. On the basis of the findings and conclusions, it is recommended that the Government’s organizations should adopt a comprehensive approach to orientation program, which can provide information in a way that can be absorbed and retained. Through orientation program the employees would develop a team-environment, because not only new employees are affected by the quality of orientation program, subordinates, peers, public and even new hire’s family have a stake in its success. To strengthen the orientation programme continuous studies on employee orientation evaluation in the organization should be carried out. Also, the ministry should make sure that employee orientation program is not an ill-guided fantasy of what it wishes the ministry could be. With regard to further research, it was recommended to conduct a study in other Government and Private institutions because of its impact on the organization productivity.