Dissertation (Master of Business Administration)The broad objective for this study was to investigate the influence of incentive schemes and employees performance in educational institutions using the case of the University of Dodoma. Specifically, the study aimed at determining the influence of incentive on employees’ performance at the University of Dodoma; compare the effects of financial and non-financial incentives in motivating employees at University of Dodoma and to suggest measures to improve performance of employees at University of Dodoma. The study was descriptive in nature and it employed quantitative approach in the data analysis. The study had a sample of 40 respondents who were purposively selected. The study through the first objective revealed that salary, staff loan, overtime allowance and house allowance to be top four most important indicators of motivation incentive at the University of Dodoma. Through the second specific objective, it was revealed that financial incentive was the most significant incentive in motivating staff at the University of Dodoma. In determining the most significant non-financial incentives on motivation; staff housing, teaching materials and transport were most significant non-financial incentives at the University of Dodoma. It was concluded that managers need to make sure their employees work in pleasant and desirable work environments. If people grow in an environment in which their needs are not met, they will be unlikely to function as healthy individuals or well-adjusted individuals. This study recommends the use of its results as starting point for managers and other interested parties to identify and understand factors motivating employees in their institutions to ensure an environment that encourages, promotes, and fosters such factors.