Dissertation (MA Business Administration)The study was intended to investigate the effects of employee service culture on internal service quality, in an organization by taking a case of the Public Sector in Zanzibar region. It was guided by three specific objectives which were; to analyze the relationship between employees‟ service culture and internal service quality, to analyze the level of employees‟ awareness on service culture and to determine challenges facing internal service quality at the Public Sector. In order to achieve the specific objectives, the study was approached by using an explanatory case study design, where data were collected by using questionnaire and face to face interview. Thereafter, the analysis was done by using linear regression and correlation, Tables, frequencies and percentages with the help of SPSS software. Findings have shown that, there was a positive relationship between employee service culture and internal service quality. It was further found out that, all the eight parameters investigated on the analysis on the level of employees‟ awareness on service culture, eight parameters were unfavourably evaluated. Finally, a number of challenges facing internal service quality were uncovered, most notably being a low level of salaries, poor leadership, corruption, lack of accountability and a conducive environment. It was recommended that, government undertakes an awareness campaign through in-service training for employees, to understand their role and then put what they will learn into practice. It was also recommended that, Zanzibar Public Service Commission harness well factors that created a favorable service culture so that employees themselves could provide a high quality services internally among themselves. This would ultimately have an impact on the quality of services rendered to customers.