This study was conducted on the effects of job satisfaction policies on employee performance in Tanzania hotel industry: a case study of Victoria Palace. It specifically examined the impacts of job satisfaction policies on job performance at Victoria Palace Hotel, to evaluate the factors which affect job satisfaction at Victoria Hotel Palace, to examine the measures to improve employee’s satisfaction at Victoria Hotel Palace. This study employed a mixed research approach and the convergent parallel design as research design. This study was conducted as Victoria Palace Hotel in Mwanza. The sample size of this study was 40 respondents which included the employees and the management officials. The researcher used purposive and also used of questionnaires, structured interview to obtain information necessary for this study and Quantitative data were be first be coded using Statistical Package for Social Science (SPSS) Version 20. The findings obtained through questionnaires and interview suggested that job satisfaction is a most important aspect to enhance the performance of employees, since employees are the engine of the firm in the sense they carry out all function and duties related to production of the firm. Also it is important for the job performance and it can be affected by a number of factors such as those based on the finding from questionnaires and interview aspects. Good internal communication skills between employees and the management have been viewed as a very important requirement for job satisfaction of the employees. The study found that in order to ensure that there is effective job satisfaction for the purpose of enhancing job performance, the overtime and extra duties allowances to employees should also be provided as well there should be presence of management that listens to employee’s claims and queries. From these findings it can be concluded from the study that facets of job satisfaction such as pay, promotion, job safety and security, working conditions, job autonomy, relationship with co-workers. The study recommended that the Hotel should consider all factors like promotion, working conditions, co-workers and nature of work which have significant impact on the job satisfaction level as proved in this study. Also it is recommended that in order to enhance the employee performance in the Victoria Palace Hotel in Mwanza, the Hotel should focus on all facets of job satisfaction and not only on any one of these factors.