Effects of salary arrears on employees performance in public Sectors in Tanzania: A case of Ministry of Health Community Development Gender Elder and Children
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Mzumbe University
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A Dissertation Submitted in Partial fulfilment of the requirements for the
Degree of Masters of Business Administration in Corporate Management
(MB-CM) of Mzumbe University.
This dissertation assessed the effect of salary arrears on employee performance in the public sector in Tanzania, using the Ministry as a case study. Three specific questions guided this study: How do salary arrears affect employees’ performance? What has the government done to solve salary arrears problem? Which factors influences employee performance in Tanzania? Through a mixed methods approach, the study area was approached using interviews and questionnaires to collect and analyze information on effects of salary arrears to the performance of the employees from a sample size of 60 respondents. Although there are studies of other scholars but this study specifically dealt at assessing the impact of salary arrears to the public sector. Hence it consequently intended to fill the gap identified as to establish how salary arrears affect Employee’ performance at the Ministry, determining the factors influencing the employee performance in the public sectors and assess the effect of government intervention to solve salary arrears problems and the best way to improve salary arrears payments. Generally, the findings obtained through interviews and questionnaires have shown that the salary arrears have positive impact to the performance of the employees in most of the public sectors. It was further observed that its impacts weren’t only noticed on the attainment of organizational goals but also in employee’s lives as a whole. Although it is so true that the issue of salary arrears is a national issue and the public service management in collaboration with the Ministry of Finance and Planning are in the process to find out a new way in paying salary arrears on time. The government has introduced the system of Human Capital Management Information System (HCMIS) with brand name of LAWSON which is a very sophisticated wage bill package to monitor all public sectors employees by paying their salary monthly and on time in order to reduce arrears when they are promoted or appointed in the public sectors. There is a need to set the policy against arrears that would allow the employees from improving their performance knowing when actually their arrears would be cleared by the government.
This dissertation assessed the effect of salary arrears on employee performance in the public sector in Tanzania, using the Ministry as a case study. Three specific questions guided this study: How do salary arrears affect employees’ performance? What has the government done to solve salary arrears problem? Which factors influences employee performance in Tanzania? Through a mixed methods approach, the study area was approached using interviews and questionnaires to collect and analyze information on effects of salary arrears to the performance of the employees from a sample size of 60 respondents. Although there are studies of other scholars but this study specifically dealt at assessing the impact of salary arrears to the public sector. Hence it consequently intended to fill the gap identified as to establish how salary arrears affect Employee’ performance at the Ministry, determining the factors influencing the employee performance in the public sectors and assess the effect of government intervention to solve salary arrears problems and the best way to improve salary arrears payments. Generally, the findings obtained through interviews and questionnaires have shown that the salary arrears have positive impact to the performance of the employees in most of the public sectors. It was further observed that its impacts weren’t only noticed on the attainment of organizational goals but also in employee’s lives as a whole. Although it is so true that the issue of salary arrears is a national issue and the public service management in collaboration with the Ministry of Finance and Planning are in the process to find out a new way in paying salary arrears on time. The government has introduced the system of Human Capital Management Information System (HCMIS) with brand name of LAWSON which is a very sophisticated wage bill package to monitor all public sectors employees by paying their salary monthly and on time in order to reduce arrears when they are promoted or appointed in the public sectors. There is a need to set the policy against arrears that would allow the employees from improving their performance knowing when actually their arrears would be cleared by the government.
Keywords
salary arrears, employee performance, Public Sector-Tanzania