Rewarding Employees for Organisational Performance: Does Financial Incentives Matter in the 21st Century for Tanzanian Employees?

Abstract

This study sought to assess if rewarding employees using financial incentives can induce employees to exert their effort and ultimately enhance organizational performance. The study involved 160 respondents. Simple random sampling procedure was adopted in selecting respondents. Primary and secondary data were obtained using semi-structured interviews, questionnaires and documentary review and were analyzed through descriptive statistics and correlation analysis. The findings shows that there are variety of financial incentives used and the level of financial incentives provided to employees is adequate. In addition, some of the financial incentives provided to staff were found to have positive relationship with organizational performance whereas others seemed not to influence the performance. However, the estimated correlation coefficients were low to indicate that there might be other factors apart from financial incentives which influence organizational performance. The study recommends that the management should also consider other type of incentive which will increase individual's satisfaction and loyalty to his work, enhance more cooperation and enhance performance.