MBA-CM - MASALU Telesphory. - 2015

AN ASSESSMENT ON THE IMPACT OF MOTIVATION
ON EMPLOYEE PERFORMANCE IN TANZANIA: A

CASE OF TANESCO TABORA REGIONAL OFFICE
By
Telesphory Masalu
A Dissertation Submitted in Partial Fulfillment of the Requirement for the

Award of the Master Degree of Business Administration in Corporate
Management (MBA-CM) of Mzumbe University.
2015
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CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for
acceptance by the Mzumbe University, a dissertation entitled ‘an assessment on the
impact of motivation on employee performance in Tanzania’, in partial fulfillment of
the requirement for the award of the degree of Master of Business Administration in
Corporate Management (MBA-CM) of Mzumbe University.
___________________________
Major Supervisor
___________________________
Internal Examiner
Accepted for the Board of……………………
____________________________________________________________
DEAN/DIRECTOR, FACULTY/DIRECTORATE/SCHOOL/BOARD
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DECLARATION
I, Telesphory Masalu declare that, this dissertation report is my own original work
and that has not been presented to any other University for a similar or any degree
award.
Signature ………………………………………………..
Date: ………………………………………………………
©2015
This thesis is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactment, in that behalf, on
intellectual property. It may not be reproduced by any means in full or in part, except
for short extracts in fair dealings, for research or private study, critical scholarly
review or discourse with an acknowledgment, without the written permission of
Mzumbe University, on behalf of the author.
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ACKNOWLEDGEMENT
I would like to give out my special thanks to Almighty God for giving me strengths,
good healthy and courage to overcome obstacles and challenges towards
accomplishing this dissertation. I also thanks all who in one way or another assisted
me in doing my research.
This research is the product of many people whereby without them this work could
not have been successful. I appreciate their efforts and it is not possible to mention
all of them individually but only few as listed bellow;
Secondly, I would like to express my heartfelt gratitude and give thanks to my

employer as well as my lovely wife Monica Mahundi who struggled to help me to
complete this research.
Thirdly, I would like to thank my supervisor, Mr Robert Makorere for his support
and constant guidance since the inception until the completion of the research.
Lastly, but not least, I would like to thank all people especially Tanesco employees’
in Tabora who accepted my request to fill in questionnaires and answered interview
during data collection and other members who gave encouragement, support and
relative information throughout the study.
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DEDICATION
I would like to dedicate this dissertation to my lovely wife, parents, relatives and the
Late Engineer Monica Kebara who was the Regional Manager Tanesco Tabora for
fighting tooth and nail to make sure that I complete my studies successfully, and for
their daily prayers that enabled me to complete my masters’ degree programe at
Mzumbe University.
May Almighty God bless them all!
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ABBREVIATIONS AND ACRONYMS
FIFO - First In First out
PDP - Performance Development Programme
SPSS - Statistical Package for Social Science
TANESCO - Tanzania Electric Supply Company
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ABSTRACT
This research intended to assess the impact of motivation on employee performance

in Tanzania. Therefore the objective of the study is to asses the impact of motivation
on employee performance especially at Tanesco Tabora Regional office, to identify
and describe motivation packages available in the study area as well as finding out
how PDP Bonuses influencing employees performance in the study area.
The study on the impact of motivation on employees’ performance specifically at

Tanesco Tabora Regional office revealed that, 10 (33%) of the respondents
mentioned transport allowance as one among the motivation packages influencing
them because such allowances assisted them in fulfilling their economic activities,
while 12 of the respondents’ equivalent to (40%) said that they are given housing
allowances to foster them to perform their work and the remaining 8 respondents’
equivalent to 27% respondents said that they have been awarded performance
development programme (PDP) and encourage them to work hard.
The target population of the research also involved both male and female who are
employees’ of Tanesco Tabora regional office. A sample size of 30 was drawn.
Convenience sampling and purposive sampling methods were adopted in selecting a
sample size because it was easy to reach the respondents and based on the subjective
judgment of the researcher. Furthermore, the main instrument which was used in
collecting data was questionnaire method since it keep large amount of information
and relatively easy to analyse during data analysis.
Moreover, the study recommends that since motivation factors like attractive salary,
training and good working environment to any employees is very essential, it is
important for employers to value it because it motivates employees to perform their
work hard with efficiency and effectiveness.
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TABLE OF CONTENTS
CERTIFICATION .....................................................................................................ii
DECLARATION.......................................................................................................iii
ACKNOWLEDGEMENT........................................................................................ iv
DEDICATION............................................................................................................ v
ABBREVIATIONS AND ACRONYMS ................................................................. vi
ABSTRACT ..............................................................................................................vii
TABLE OF CONTENTS........................................................................................viii
LIST OF FIGURES ................................................................................................xiii
CHAPTER ONE ........................................................................................................ 1

1.0 Introduction ............................................................................................................ 1
1.1 Background of the Study........................................................................................ 1
1.2 Statement of the problem ....................................................................................... 2
1.3 Research Objectives ............................................................................................... 3
1.3.1 General Objective................................................................................................ 3
1.3.2 Specific Objectives.............................................................................................. 3
1.4 Research Questions ................................................................................................ 3
1.5 Significance of the Study ....................................................................................... 3
CHAPTER TWO ....................................................................................................... 5

LITERATURE REVIEW.......................................................................................... 5
2.0 Introduction ............................................................................................................ 5
2.1 Definition of key terms .......................................................................................... 5
2.1.1 Motivation ........................................................................................................... 5
2.1.2 Organization performance................................................................................... 6
2.1.3 Employee performance ....................................................................................... 6
2.2 Theoretical review.................................................................................................. 6
2.2.1 Maslow’s hierarchy of needs theory ................................................................... 7
2.2.2 McClelland’s Need Theory ................................................................................. 9
2.2.3 Personality Theory ............................................................................................ 10
2.2.5 Equity Theory.................................................................................................... 11
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2.2.6 Rewards............................................................................................................. 13
2.2.7 ERG Theory ...................................................................................................... 14
2.3 Empirical study .................................................................................................... 15
2.4. Performance Development Programme Bonuses................................................ 17
2.4.1 People Perspective ............................................................................................ 17
2.4.2 Technical Aspects ............................................................................................. 17
2.4.3 Customer Perspective........................................................................................ 18
2.4.4 Financial Perspective ........................................................................................ 18
2.5 Knowledge gap..................................................................................................... 18
2.6 Conceptual frame work ........................................................................................ 18
CHAPTER THREE ................................................................................................. 20
RESEARCH METHODOLOGY ........................................................................... 20
3.0 Introduction .......................................................................................................... 20
3.1 Study area............................................................................................................. 20
3.2 Research design.................................................................................................... 20
3.3 Study population .................................................................................................. 21
3.4 Sample size and sampling techniques .................................................................. 21
3.4.1 Sample size........................................................................................................ 21
3.5 Sampling technique.............................................................................................. 21
3.5.1 Convenience sampling ...................................................................................... 21
3.5.2 Purposive sampling ........................................................................................... 21
3.6 Data collection techniques ................................................................................... 21
3.6.1 Questionnaire method ....................................................................................... 22
3.6.2 Interview method .............................................................................................. 22
3.6.3 Observation Method.......................................................................................... 23
3.6.4 Secondary data methods.................................................................................... 23
3.7 Documentary review ............................................................................................ 23
3.8 Data analysis methods.......................................................................................... 24
3.8.1 Qualitative data analysis ................................................................................... 24
3.8.2 Quantitatively data analysis .............................................................................. 24
CHAPTER FOUR.................................................................................................... 25
RESULTS AND DISCUSSION .............................................................................. 25
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4.1 Introduction .......................................................................................................... 25
4.2.1 Gender Distribution........................................................................................... 25
4.3.1 Other motivation packages................................................................................ 29
4.3.2 Better Salary...................................................................................................... 29
4.3.3 Provision of education allowance ..................................................................... 30
4.3.4 Provision of health services freely .................................................................... 30
4.4 Description analysis on how motivation package influenced employees’
performance in the study area. ................................................................................... 30
4.5 Description analysis on how PDP Bonuses influencing employees performance.
.................................................................................................................................... 32
4.6 Link between PDP packages and employees performance.................................. 33
CHAPTER FIVE...................................................................................................... 35
DISCUSSION OF THE FINDINGS....................................................................... 35
5.1 Introduction .......................................................................................................... 35
5:2 Discussion of the findings.................................................................................... 35
5.3 Discussion on performance of employees in their working areas........................ 36
5.4 Discussion on how is motivation package influencing employees’ performance 37
5.5 Discussion on whether financial is an incentive or not at Tanesco...................... 38
5.6 Discussion on how PDP Bonuses is influencing employees performance at
TANESCO ................................................................................................................. 39
5.7 Discussion on the relationship between PDP packages and employees
performance................................................................................................................ 39
CHAPTER SIX ........................................................................................................ 41

SUMMARY, CONCLUSIONS AND POLICY IMPLICATIONS...................... 41
6.1 Introduction .......................................................................................................... 41
6.2 Summary .............................................................................................................. 41
6.3 Conclusion ........................................................................................................... 42
6.4 Policy Recommendations..................................................................................... 43
6.4.1 Improve transport allowance............................................................................. 43
6.4.2 Improve housing allowance .............................................................................. 43
6.4.3 Relationship between motivation packages and employees performance ........ 43
6.4.4 Promotion of employees ................................................................................... 43
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6.4.5 Trainings ........................................................................................................... 44
REFERENCES......................................................................................................... 45
QUESTIONNAIRES ............................................................................................... 51
MANAGEMENT QUESTIONS ............................................................................. 54
DODOSO KWA WAFANYAKAZI WA TANESCO TABORA......................... 56
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LIST OF TABLES
Table 4.1 Respondents distribution by Sex................................................................ 25

Table 4.2 Age of the respondents............................................................................... 26
Table 4.3 Marital status.............................................................................................. 26
Table 4.4 Education of the respondents ..................................................................... 27
Table 4.5 Working experience of the employees....................................................... 27
Table 4.6 Performance of employees in their working area ...................................... 28
Table 4.8Description on how motivation package influenced employees’
performance................................................................................................................ 30
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LIST OF FIGURES
Figure 1: Maslow’s Hierarchy of Need........................................................................ 8
Figure 2: Adam’s Equity Theory ............................................................................... 12
Figure 4: Conceptual frame work .............................................................................. 19
Figure 5: Relationship between PDP packages and employees performance............ 34
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CHAPTER ONE
1.0 Introduction
This chapter describes the background information of the research problem,

statement of the problem, objectives of the study, and research questions. Finally, it
explains the significance of the study and the scope of the study.
1.1 Background of the Study
Motivation is the driving force which allows an employee to take action on his/her
desires or goals (Patrick, 2008). In Tanzania it was noted that employees have been
facing various challenges especially on the working environments, salaries and job
security. As a result of these, job performance in working place has been going down
(Simons, 2006).
Motivation is the force that makes employees choose a particular job, stays with that
job for longer period, and work hard. In other words, people exert efforts hoping that
their needs will be satisfied (Kalim, 2010). Employee’s motivation is very significant
since the employees expect good working conditions, fair pay, fair treatment and
being involved in decision making. These factors are not fairly given to employees in
local governments in Tanzania (Patrick, 2008).These expectations vary from
organization to organization. For the organization to resolve these challenges, an
understanding of employees’ motivation is required (Kalim, 2010). As noted by
Thomson (2006) that extrinsic motivation such as money can highly motivates
employees and therefore help to improve services delivery in both public and private
sectors.
However, Herzberg (1968) argues that, money is not a motivator, It is an hygiene

factor. Furthermore what is done to or for people to motivate them are of many types.
Therefore motivation is very essential issue that can raise morale of employees in an
organization. Without motivation employees cannot deliver the required outputs
(Adams, 2002).In view of the factors above the present study therefore, attempts to
find out, the impact of motivation on employee performance as a case study of
Tanesco Tabora Regional Office.
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1.2 Statement of the problem
Motivation is one of the vast challenges facing many public institutions including
TANESCO in Tanzania (Armstrong, 2006). According to Patrick, (2008) lack of
motivation among employees is the major factor of poor job performance in
Tanzania. For example in TANESCO poor services delivery is linked by lack of
motivation among employees (Allan 2008).
The employee’s motivation is a key factor towards job performance and services
delivery in any organization or institution. Motivation has been a hallmark of
productivity and job performance in every organization. This situation has been a
stumbling block towards provision of services by employees in Tanzania. By
identifying this, several measures have been taken by the government to improve
motivation to her employees such as training opportunities, seminars, salary
increment as well as incentives like housing and transport allowances.
Following this situation, lack of adequate motivation was reported in Tanzania to

influence poor employee’s performance in working areas, Toga D, (2011). This is
connected with low monthly salary and poor working environment in most of public
offices which results to job dissatisfaction among employees and ultimately
employees resigns their employment.
Furthermore empirical evidence by (Chambuko, 2008); Adams, (2002) noted that

most of employees in Tanzania are doing poorly due to inadequate in-service training
provided by their employers and also little salaries which are paid to them.Thus, this
results to shifting of employees from one office to another. Therefore, the purpose of
the current study is to assess the impact of motivation on employee performance in
Tanzania as a case of Tanesco Tabora Regional office.
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1.3 Research Objectives
1.3.1 General Objective
The general objective of this study is to assess the impact of motivation on employee
performance in Tanzania.
1.3.2 Specific Objectives

i. To asses the relationship between the available motivation packages and
employees performance in the study area
ii. To identify and describe motivation packages available in the study area.
iii. To assess how employees’ motivation affect working performance.
iv. To find out how PDP Bonuses influencing employees performance in the
study area.
1.4 Research Questions

i. How does motivation influence the employees’ performance at Tanesco
Tabora Regional office?
ii. What are the motivation packages available in the study area?
iii. How employees’ motivation does affect working performance?
iv. How does PDP bonuses influence employee’s performance in working areas?
1.5 Significance of the Study
i. This study will make a number of contributions to different organizations,

policy makers, Human Resource Managers, present employees and the future
ones. The study will help local top management to understand motivation
drives that influence employees perform better in their jobs.
ii. Furthermore, this study will help the managers/administrators to understand

the needs of their employees and, hence maximize employee effectiveness
and efficiency in order for the institutions/companies to gain a competitive
advantage.
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iii. Also, the study hopes to provide a concrete context for discussion about what
can be done to ensure regeneration of employee’s capability in delivering
public services.
iv. The study will also help the researcher for practical fulfillment for Masters
degree and wide the knowledge of motivation matters to employees in
working areas hence increase effectiveness and efficiency.
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CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter presents the definition of the key terms, sources of motivation,
theoretical orientation of the study, the conceptual framework of the study, the
empirical analysis of the study, critical review of literature together with literature
related to the variables and objectives of the study. The review of related literature
focuses mainly on the employees’ motivation and the impact of motivation on
individual employee performance in various working places.
2.1 Definition of key terms
2.1.1 Motivation
Motivation has been defined as an internal drive to satisfy an unsatisfied need

(Higgins, 1994 in Lindner, 1998). Motivation is defined by Robbins (1993) as the
‘‘willingness to exert high levels of effort towards organizational goals conditioned
by the effort’s ability to satisfy some individual needs’’. This implies that the
satisfaction of individual needs contributes to the sets of behaviour they exhibit in an
organization. Butkus and Green (1999), motivation is derived from the word
“motivate”, means to move, push or persuade to act for satisfying a need. Baron
(1983) defines motivation in his own right. He says that “Motivation is a set of
process concerned with a kind of force that energizes behaviour and directs it
towards achieving some specific goals.
Many writers have expressed motivation as a goal directed behavior. This objective
nature of motivation is also suggested by Kreitner and Kinicki (2001) who put
forward that motivation represents “those psychological processes that cause the
stimulation, persistence of voluntary actions that are goal directed”. In other terms, a
motivated person has the awareness of specific goals that achieved in specific ways;
therefore he/she directs his/her effort to achieve such goals (Nel et al., 2001).
5
2.1.2 Organization performance
According to Chen (2004) performance refers to the accomplishment of a given task

measured against preset known standards of accuracy, completeness, cost, and speed.
In a contract, performance is deemed to be the fulfillment of an obligation, in a
manner that releases the performer from all liabilities under the contract.
2.1.3 Employee performance
Employee performance involves quality and quantity of output, presence at work,

accommodative and helpful nature and timeliness of output. According to Yang
(2008), performance of the individuals cannot be verified. Similarly he asserts that
organizations can use direct bonuses and rewards based on individual performance if
employee performance is noticeable (Yang, 2008).
In line with Yang (2008) and Bishop (1987) investigated employee performance and
revealed that acknowledgment and recognition and reward of performance of
employees direct the discrimination between employee productivity. Moral and
productivity of employees is highly influenced by the effectiveness of performance
of an organization and its reward management system (Yazıcı, 2008).
According to Ahmad, (2012) customer would not be satisfied until and unless
employees are satisfied. Because, if employees are satisfied, they will do more work
therefore ultimately customers will be satisfied. Employee performance is actually
influenced by motivation because if employees are motivated then they will do work
with more effort and by which performance will ultimately improve (Shafighi, 2013).
2.2 Theoretical review
Various motivational theorists such as Abraham Maslow’s (1979) hierarchy of needs

which provided insight into personal behaviour patterns have been extensively
researched. Other influential research has been conducted by Frederick Herzberg
(1993) who looked at work satisfaction, and Douglas McGregor (2008) whose theory
x and y suggests management styles that motivate and de-motivate employees.
6
In order to understand what motivates employees and how employees should be
motivated, content theories like Maslow’s hierarchy of Needs theory, MacClelland’s
Need theory, Vroom VIE theory, Adam’s equity theory, ERG theory, Hertzberg’s
two factor theory and modern theory of motivation were chosen as the most
appropriate to be researched for the topic under review. Abraham Maslow’s
hierarchy of Needs theory and Mac Clelland’s Needs theory forms the basis of this
study under review.
2.2.1 Maslow’s hierarchy of needs theory
Needs form the basis of Abraham Maslow’s theory of employee motivation (1943);
since motivation starts with needs, therefore it captures wider area of employee
motivation due to the fact that human beings is controlled by his personal needs. A
need is something that a person requires. Satisfaction occurs when needs are
fulfilled, and motivation is the attempt to satisfy a need (Aldag, 2002).
One of the most widely mentioned theories of motivation is the hierarchy of needs
theory put forth by psychologist Abraham Maslow. Maslow saw human needs in the
form of a hierarchy, ascending from the lowest to the highest, and he concluded that
when one set of needs is satisfied, this kind of need ceases to be a motivator.
Maslow’s hierarchy of needs consists of five levels that are generally depicted as
pyramid. Listed from the lowest level of needs to the top, they are the following:
physiological needs; security and safety needs; esteem needs; social needs; and self-
actualization needs. Lindner, (1998).
The person then seeks a higher level of need satisfaction. The theory also indicates
that money’s power to motivate a person is limited. Drummond, (2000).
As each of these needs is substantially satisfied, the next need becomes dominant.
From the standpoint of motivation, the theory would say that although no need is
ever fully gratified, a substantially satisfied need no longer motivates. So if you want
to motivate someone, you need to understand what level of the hierarchy that person
is on and focus on satisfying those needs or needs above that level.
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Maslow’s need theory has received wide recognition, particularly among practicing
managers. This can be attributed to the theory’s intuitive logic and ease of
understanding. However, the research does not validate this theory. Maslow provided
no empirical evidence and other several studies that sought to validate the theory
found no support for it. In fact, Maslow’s hierarchy of needs is depicted as pyramid
as shown below in figure.
Figure 1: Maslow’s Hierarchy of Need
Self
Actualization
Self Esteem
Social Needs
Securityand SafetyNeeds
Physiological Needs
Source: Maslow’s theory (1943)
Maslow’s theory can be a useful tool for employers in planning and determining the
kinds of rewards that can be more effective in motivating employees. The most
important thing is to value every employee as an individual and also to understand
that employee’s needs may differ from time to time. Therefore, it must be put into
consideration that employers have responsibility of reassessing their employees
regularly to find out whether the employees lack their needs in their working places.
Maslow (1943) suggests that human needs can be classified into five categories and
that these categories can be arranged in a hierarchy of importance. These include
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physiological, security, belongings, esteem and self-actualization needs. According
to him, a person is motivated first and foremost to satisfy physiological needs. As
long as the employees remain unsatisfied, they turn to be motivated to fulfill those
needs. When physiological needs are satisfied they cease to act as primary
motivational factors and the individual moves “up” the hierarchy and seek to satisfy
security needs. This process continues until finally self actualization needs are
satisfied.
According to Maslow (1943), the rationale is quite simple because employees who
are too hungry or too ill to work will hardly be able to make much a contribution to
productivity hence difficulties in meeting organizational goals. This theory is
applicable in this study because the theory can be a useful tool for employers in
planning and determining the kinds of rewards that can be more effective in
motivating employees.
2.2.2 McClelland’s Need Theory
Also, David McClelland (1961) through his Needs theory portrays that any human
being is controlled by three needs which are: Need for power, Need for Affiliation,
and Need for Achievement. Basically, people for high need for power are inclined
towards influence and control. They like to be at the center and are good orators.
They are demanding in nature, forceful in manners and ambitious in life. They can be
motivated to perform if they are given key positions or power positions. In the
second category are the people who are social in nature. They try to affiliate
themselves with individuals and groups. They are driven by love and faith. They like
to build a friendly environment around themselves. Social recognition and affiliation
with others provide them motivation. People in the third area are driven by the
challenge of success and the fear of failure. Their need for achievement is moderate
and they set for themselves moderately difficult tasks. They are analytical in nature
and take calculated risks. Such people are motivated to perform when they see at
least some chances of success.
McClelland (1961) observed that with the advancement in hierarchy the need for
power and achievement increased rather than affiliation. He also observed that
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people who were at the top, later ceased to be motivated by this drive. Since
McClelland's first experiments, over 1,000 studies relevant to achievement
motivation have been conducted. These studies strongly support the theory in these
three areas.
According to McClelland (1961), the presence of these motives or drives in an

individual indicates a predisposition to behave in certain ways. Therefore, from a
manager's perspective, recognizing which need is dominant in any particular
individual affects the way in which that person can be motivated. The status of
McClelland’s theory is however questionable. It is unclear how some of the measures
in this theory correlate with one another and how motives have been translated into
goals.
Ackerman (2004) in Landy and Conte (2007) propose that motivation and
performance can actually change over time since one’s personality and cognitive
abilities change with time, this theory is applicable in this study because it will reveal
to identify the extent to which the organizational performance is linked with
motivation.
2.2.3 Personality Theory
Maslow’s need theory suggests that people value what they need (Locke and Latham,
2004), while personality is a comprehensive construct and motivation is a
fundamental aspect of behaviour. Motivation is an individual characteristic, but it
arises from both within the individual, for insistence personality, and environmental
conditions. Several personality traits are relevant to job performance and may affect
the individual’s ability to perform a task (Spector, 2000). This shows how closely
personality and motivation are related.
The theories of personality are therefore in large part of motivation theories (Ewen,
1980). Personality can therefore be defined as an individual’s behavioural and
emotional characteristics that are found to be stable over time and in various
situations (Conte, 2007). Personality- based approaches to motivation have always
10
had strong supporters (Locke and Latham, 2004). McClelland and his colleagues
made the strongest case for the role of personality in motivation.
2.2.5 Equity Theory
Adams’s equity theory emphasizes that employees have a need for fairness at work
and value placed on their contribution at work. The willingness of the employees to
be part of the organization depends on motivational factors such as achievement,
recognition, the work itself, responsibility, advancement and growth. Hygienic
factors include; supervision, working conditions, interpersonal relationship, pay and
job security. Company policies and success of the organization depend on the
evaluation of the fairness, or impartiality, of the rewards they will receive. In a
reasonable situation, an employee receives rewards relative to the contribution he or
she makes to the organization. Employees are motivated to preserve a balance
between what they observe as their inputs or assistance and their rewards as
compared to others (Robbins 2005).
According to Adam’s (1996) inputs such as skill, tolerance, determination and

enthusiasm, assistance given to other employees, experience, sacrifices made can be
defined in many ways other than the number of hours spent at work. Meanwhile,
output is not the remuneration received for the task done, rather it comprises the
various types of financial and non-financial rewards such as recognition for the work,
appreciation from co-workers, promotions received. Thus, for an employee to feel
secured there needs to be a cohesive balance between inputs and outputs. Decision-
makers within the organization should endeavor to prevent problems of equity by
ensuring that rewards are fairly distributed on the basis of performance and that
employees clearly understand the basis for their pay inclusive of benefits (Edward’s
1999).
Balance theories assume that people have a set of beliefs in which they strive to
maintain a balance. Imbalance is a source of motivation to achieve balance
(Edwards, 1999). Adam’s equity theory is probably the most thoroughly developed
statement on how people evaluate a social exchange relationship. Equity theory
states that people are motivated to achieve a condition of equity or fairness in dealing
11
with the people at work and the organization (Spector, 2000). As per the equity
theory of Stacey Adams, people are motivated by their beliefs about the reward
structure as being fair or unfair, relative to the inputs. People have a tendency to use
subjective judgment to balance the outcomes and inputs in the relationship for
comparisons between different individuals.
Figure 2: Adam’s Equity Theory
Source: Edwards, P (1999)
If people feel that they are not equally rewarded they either reduce the quantity or
quality of work or migrate to some other organization. However, if people perceive
that they are rewarded higher, they may be motivated to work harder. People
calculate how much they are investing in their work (for example, training effort)
and what they are getting out of it (for example, compensation, promotion) (Landy
12
and Conte, 2007). Inputs are the factors being brought into the job and include effort,
skills, education, training, experience and seniority. Outcomes represent the results
of working at the job and include feelings of accomplishment, pay and benefits and
social status of the job (Edwards, 1999). Employee compares their outcome input
ratio with those of the other employees.
A state of equity exists when the ratio of one employee is equal to that of other
employees. When this happens, fairness has been achieved (Robbins, 2005).
However, tension is created when the employee realizes inequality in the ratio
relative to others. This tension serves as the basis for motivation (Robbins, 1993 in
Ramlall, 2004). According to Adams, organizations should develop reward systems
that are seen to be fair and equitable, and use a reward system consistent with what
the employees believe their value to be to the organization (Ramlall, 2004). This
theory is applicable in this study because it shows that employees can be highly
motivated when they are treated equally in the organization.
2.2.6 Rewards
When rewards are given to those who achieve high performance, they can become an
important instrument to encourage the continuance of the desired behaviour (Locke
and Latham, 1990). In the work place, external rewards include incentives, benefits
and other monetary forms of rewards. Such external rewards are normally used by
managers as motivators. However, Herzberg (1968) argues that motivation comes
from work itself and these external rewards are merely just satisfiers or dissatisfiers
(Bowen, 2000). Managers who feel that their employees have a lack of motivation
should reassess the reward systems being used in the company (Robbins, 2003).
Managers must maintain a balance between the employee’s base pay, benefits and
other external rewards. These provide employee with a reward programme that is
fair, competitive and measurement-based. Once employees are motivated, they will
be able to fulfill the customer’s needs and together achieve the company’s goal
(Bowen, 2000).
However, not all rewards are external. Internal rewards can occur as a result of a
sense of accomplishment, attaining a level of excellence and success or making
13
progress towards a goal. Higher satisfaction is experienced when the success is
attributed to the individual rather than to external factors. Difficult goals may lead to
higher levels of satisfaction than easier goals because they are attained less
frequently (Locke and Latham, 2004). This theory is applicable in this study because
it shows that rewards such as pay, benefits and other external rewards play role in
employees’ motivation in workplaces.
2.2.7 ERG Theory
ERG theory groups human needs into three broad categories: existence, relatedness,
and growth. (Notice that the theory’s name is based on the first letter of each need).
Relatedness needs refer mainly to Maslow’s belongingness needs. Growth needs
correspond to Maslow’s esteem and self-actualization needs.
Existence needs include a person’s physiological and physically related safety needs,
such as the need for food, shelter, and safe working conditions. Relatedness needs
include a person’s need to interact with other people, receive public recognition, and
feel secure around people (i.e., interpersonal safety). Growth needs consist of a
person’s self-esteem through personal achievement as well as the concept of self-
actualization presented in Maslow’s theory.
ERG theory states that an employee’s behavior is motivated simultaneously by more

than one need level. Thus, you might try to satisfy your growth needs (such as by
completing an assignment exceptionally well) even though your relatedness needs
aren’t completely satisfied (Conte, 2007).
ERG theory applies the satisfaction-progression process described in Maslow’s needs

hierarchy model, so one need’s level will dominate a person’s motivation more than
others. As existence needs are satisfied, for example, related needs become more
important. Unlike Maslow’s model, however, ERG theory includes a frustration-
regression process whereby those who are unable to satisfy a higher need become
frustrated and regress to the next lower need level. Armstrong, (2001).
14
For example, if existence and relatedness needs have been satisfied, but growth need
fulfillment has been blocked, the individual will become frustrated and relatedness
needs will again emerge as the dominant source of motivation. Although not fully
tested, ERG theory seems to explain the dynamics of human needs in organizations
reasonably well. It provides a less rigid explanation of employee needs than
Maslow’s hierarchy.
Human needs cluster more neatly around the three categories proposed by Alderfer
than the five categories in Maslow’s hierarchy. The combined processes of
satisfaction-progression and frustration-regression also provide a more accurate
explanation of why employee needs change over time. Overall, it seems to come
closest to explaining why employees have particular needs at various times. Lindner,
(1998).
2.3 Empirical study
Motivation in this context is thus described as the economic tool that enables
managers and administrators to contract others to achieve stated or agreed targets.
According to Taylor et al (2008) stated in his research that entitled assessment on
factors that influencing teacher’s performance. The study used questionnaire
technique whereby 86 respondents were involved. Data were analyzed by using
Statistical Package for Social Science SPSS whereby the study suggested that that no
single individual person can motivate others but can only create conditions for others
to be self-motivated.
Motivated employees tend to play essential roles within an organization whereby

making them essential and beneficial. Motivating employees according to Sanzota
(1997) is thus not an easy task. Employees are likely to be motivated in diverse ways
taking into consideration their various positions or ranks within the organization. For
example an employee may be motivated when entrusted with many responsibilities
and being allowed the freedom to take contingency decisions whilst another may
prefer monetary rewards.
15
In order for employees to be efficient, it is necessary for management to understand
what actually motivates their employees within the environment of the roles
employees perform. This is basically due to the fact that strategies involved in the
process of employee motivation are considered not to be static. Additionally, as
employees draw closer to retirement, the delight attained in work satisfaction
becomes more of a de-motivator (Roberts, 2005).
However, Maryam, (2013) several factors are involved in the life of any
organization; the most important of these factors include labor, machinery and
Capital, among these factors, the most important and most effective is labor or
human resources, because labor is the creator source for efficiency of machinery,
capital, materials, and the other factors. Today, one of the major problems of
organizations is to develop techniques that bring the will and interest for success to
employed personnel in the organization.
However, job performance also depends on individual capability and environment

fitness as well as motivation. To reach a higher level of motivation, an individual
should firstly decide to do a job, and the proper materials and tools must be provided
for him/her to perform the work. Absence of each of these contexts will harm the
performance, thus the manager shall ensure that the above conditions are provided.
Searching in the field of motivations replies the questions about human behavior.
Regarding the different motives, people do things differently. Even in the case that
the individuals have the same motives, motivation intensity of different individuals
differs from each other, which is due to personal distinctions.
Work motivation is a set of energetic forces that originate both within as well as
beyond an individual’s being, and determines the form, direction, intensity and
duration of a work-related behavior (Latham and Pinder, 2005).
Motivation is an internal state and force, which encourages the individual to take a
specific action. What is considered to be important as a motivation for a particular
individual or group may be not important for another individual or group. In other
words, the individual him/herself and the context in which he/she operates are the
16
most important factors affecting on motivation (Gandalf, 2005). Studied the effect of
work motivation on employees’ job performance’ whereby the results discovered
that employees have affected by motivation as a result it created a positive work
environment and to successfully execute the anticipated programs.
2.4. Performance Development Programme Bonuses
Performance Development Programme Bonuses are the bonuses which are offered
by Management of Tanesco to its staff after achievement of goals and targets
outlined under the Performance Development Progamme [PDP].This programme has
four main categories which are being considered during evaluation process which
entails to know whether goals and objectives have been achieved or not. Each
category has major successes and achievements, notable innovations, main
challenges, failures and emerging issues. The major categories of Performance
Development programme are as outlined and briefly explained below
2.4.1 People Perspective
This category is concerned mainly with staff of the company. Their performances are
evaluated each month in relation to other categories. These are the main drivers and
engine to achieve goals and targets of other categories. Some of the focuses on this
category is to counsel employees identified as Vishoka and poor performers to
improve their behaviour as well as rewarding employees who perform well on
monthly basis. Rewarding employees tends to improve their work morale
2.4.2 Technical Aspects
Major concerns under Technical Perspective is to reinforce Revenue protection team,

Creation of Public awareness on planned and unplanned outges, installation of Smart
Meters, Improved power quality by ensuring connection by using PG Clamps,
Connection of customers within 7 days for customers within 30 meters route length
as well as training of Technical staff and reducing power outges by improving line
maintenance to some areas. These concerns are used by Company Management
when evaluating Performance Development Programme targets
17
2.4.3 Customer Perspective
Under customers’ Perspective the main intention is provision of higher Quality

services to company customers. Main targets under this Perspective includes
reduction of Customer Complaints, Increased number of customers, provision of
timely and correct bills and using various media to communicate with customers
with regards to planned or unplanned outgoes
2.4.4 Financial Perspective
The key issues used during evaluation of Performance Development Programme in

determining as to whether to issue Bonuses or not to company’s staff includes timely
billing and delivery, Luku roll out availability, Payment of creditors through First In
First out [FIFO] Method, Sensitization of customers on timely payments of Bills,
Improved Revenue collections as well as Sensitization of Interest waiving to
customers with long time outstanding debts.
2.5 Knowledge gap
Many studies indicate that there are links between employees’ performance and
motivation. In order to meet organization targets, some institutions need to motivate
their employees .A simple statement, almost self-evident in any organization, yet it
has probably caused more controversy, applied research and practical advice than
any other assertion in the history of management writing and thinking (Kavanagh,
1997).The assessment on the impact of motivation on employee performance in
Tanzania helps the business to grow, fill in vacant position, prepared employees for
training and development. There is no documented evidence indicating that the same
study was done in Tanesco Tabora Regional office. Therefore findings ,conclusion
and recommendations from this study will cover this gap under study
2.6 Conceptual frame work
It is narrative outline or diagrammatic presentation of variables to be studied in

hypothetical relationship between and among the variables (Smyth, 2004); therefore
18
it shows the relationship between dependent and independent variables. Conceptual
framework shows hypothetical view on the impact of motivation on individual
employee performance, as a case study of Tanesco Tabora Regional office.
Figure 4: Conceptual frame work
Independent variable Dependent variable
Motivation
Packages
available
Factors Employee
influencing performance
motivation
ways for
improving
performance
Source: Researcher, (2015)
19
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 Introduction
This chapter presents research methodologies to be used in this study. It describes

the study area, research design, sample and sample size, sampling procedures, data
collection methods, validity and reliability as well as data analysis plan for data
presentation.
3.1 Study area
The research was conducted at Tanesco Tabora Regional office. Tanesco Tabora
Regional office was chosen because it is one among the public institution that can be
accessed easily by the researcher. Also it is because there is allegation that Tanesco
is not performing better because employees are not motivated. Thus this study wishes
to carry out this study at Tanesco Tabora Regional office to testify the facts
3.2 Research design
According to Aaker et al, (2002) research design is detailed blue print used to guide a
research study towards its objectives. By this definition, a research design detailed
plan of work done to achieve the research objectives.
A case study design was employed so as to describe and explain conditions of the
present study by using many subjects and questionnaires to fully describe a
phenomenon. The reason behind of using this kind of design is because it provide
information about a particular subject that would not be possible to acquire through
another type of experimentation as it focus on and gather in depth information about
a specific person, group, community or event, Kothari, (2004)
20
3.3 Study population
Population is a group of individuals, objects or items from which measurement are

taken (Tromp, 2006). The study population involved 30 staff, whereby 25 population
were from Tanesco employees and the other 5 population were from managerial
level. This enabled the researcher to identify and focus population at the field.
3.4 Sample size and sampling techniques
3.4.1 Sample size
The study used a sample of 30 respondents for collecting necessary information in

the study area whereby normal staff were be 25 and 5 key informants. The reason for
selecting such sample size is due to budget constraints.
3.5 Sampling technique
3.5.1 Convenience sampling
The study used convenience sampling technique to select normal staff. Convenience
sampling is a specific type of non-probability sampling method that relies on data
collection from population members who are conveniently available to participate in
study.
3.5.2 Purposive sampling
The study selected all key informants based on their role of providing insight
information that were not be provided by other respondents. The researcher through
this technique was able to obtain enough information about the phenomenon under
the study.
3.6 Data collection techniques
Data collection techniques refer to secure information from individual for survey
research purpose (Kothari, 2004). The study depended on primary data collected
from the staff and some secondary data. The primary data was collected from the
21
field survey using questionnaires and interview schedules. The questionnaires
comprised both close-ended and open ended questions. These formed the basis of the
analysis of the study. The researcher went to various departments within Tanesco
Tabora regional office and handed the questionnaires to the various respondents. The
secondary data was sourced from the audited reports.
3.6.1 Questionnaire method
A questionnaire is a formatted set of questions that is drawn up to meet the objectives

of the study. Kothari, (2004). Questionnaire method was used to collect data. Data
were collected from thirty (30) respondents. Questionnaires were distributed to
respondents who are working within Tanesco Tabora Regional office. Because the
study was using questionnaire method to collect primary data, the researcher used
administered technique to collect data. Respondents were asked questions and then
the researcher fill in the respondents in the questionnaire. The questionnaire
comprised open and ended questions
3.6.2 Interview method
This method was administered face to face with Tanesco workers in Tabora Regional
office. During the interview, probing questions was applied to get deeper information
from respondents. This method was useful as it helped to collect the required
information and to understand different people’s perception on the topic under study
and was suitable for intensive investigation Kothari (2004).
This was done by conducting 10 face to face interviews with Tanesco workers in
Tabora Regional office. The researcher interviewed respondents in order to find out
what they do feel or think about the impact of motivation on individual employee
performance and this made it easier to compare answers further helping to inform the
study. The tool was also permit the researcher to ask more complex and follow up
questions which were not possible in the questionnaires. The interviews helped the
researcher to take account of non verbal communications.
22
3.6.3 Observation Method
Observation was made during data collection in order to understand the physical of
the study area, whereby the motive behind adopting observation, firstly, subjective
bias is eliminated if observation is done accurately. Secondly, the information
obtained under this method data were related to what is currently happening; thirdly,
it is relatively less demanding of active cooperation on the side of respondents.
3.6.4 Secondary data methods
Secondary data refer the data collected by someone other than the researcher.
Common sources of secondary data for social science include censuses,
organizational records and data collected through qualitative methodologies or
qualitative research. Primary data, by contrast, are collected by the investigator
conducting the research (Kothari, 2003).
Secondary data analysis saves time that would otherwise be spent collecting data
and, particularly in the case of quantitative data, provides larger and higher-quality
databases that was unfeasible for any individual researcher to collect on their own. In
addition, analysts of social and economic change consider secondary data essential,
since it is impossible to conduct a new survey that can adequately capture past
change and/or development. So due to those techniques used for secondary data
collection as explained here under:
3.7 Documentary review
In this study, documentary review as a method of data collection was employed.

Various documents were used to obtain relevant information about the study. In this
method, the study composed by documentary review, news reports from different
sources such as internet and newspapers, reviewing related literature such as
journals, previous studies, website referencing, and other relevant documents. This
method used in order to help the researcher to obtain enough and relevant
information about the study from various relevant documents on the impact of
motivation on individual employee performance in Tanesco Tabora Regional office.
23
3.8 Data analysis methods
The obtained data were analyzed qualitatively as well as quantitatively to ensure

consistence and better estimate on the impact of motivation on individual employee
performance.
3.8.1 Qualitative data analysis
The study analyzed data descriptively. This was mainly for specific objective one to
three. The study interpreted the functions using non numerical approach.
3.8.2 Quantitatively data analysis
Quantitative data were coded to facilitate data entry in a computer. Collected data
were analyzed by using Statistical Package for Social Science (SPSS). The study
used percentage and frequencies to analyze socio economic characteristics of
respondents to assess influencing motivation on employee especially at Tanesco
Tabora Regional office.
24
CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 Introduction
This chapter presents discussion of the findings from the study. It is divided into two
main parts. The first part presents socio-economic characteristics in two groups of
respondents. The social characteristics are sex, age, education level and occupation
of the respondents, on the impact of motivation on individual employee performance
as a case study of Tanesco Tabora. The second part of the chapter, discusses the
findings on the impact of motivation on employee performance.
4.2 General Characteristics of Respondents
The study wanted to assess general characteristics of respondents by looking

different variables so as to understand the kind of respondents that have been mate
during the study. The findings are explained in table 4.1 below:
Table 4.1 Respondents distribution by Sex
Gender Frequency Percentage
Male 17 57
Female 13 43
Total 30 100
Source: Field survey, 2015
4.2.1 Gender Distribution
Table 4.1 above shows that, there is more number of men than women working in
Tanesco, Tabora. Thus demonstrated that, majority of men prefers working in this
field than women. Also men exceeded more than 50% in comparison with women
employed by the Tanzania electric company. So in this case there is no equal
opportunity between these genders in this field. This implied that despite the
government efforts towards gender equality, in some working stations there is no
25
gender balance between employees.
Table 4.2 Age of the respondents
Age ranges Frequency Percentage
18-28 1 3
29-38 12 40
39-48 5 17
49+ 12 40
Total 30 100
According to the table 4.2 above, many respondents’ were in between 29 to 38 years
of age, the age, others who ranges 39-48 years were 12 (40%) while those who had
39-48 years of age were 5 equivalent to 17% and the remaining 12 (40%) of the
respondents were above 49 years and they are approaching retired age.
Table 4.3 Marital status
Responses Frequency Percentage
Single 5 17
Married 20 66
Widow 2 7
Divorced 3 10
Total 30 100
26
According to the findings in the table above the study depicts that employees had
different status whereby some of them were single, others were married and others
divorced while others were widow.
Table 4.4 Education of the respondents
Education level Frequency Percentage
Secondary 7 23
Certificate 3 10
Diploma 12 40
Degree 8 27
Total 30 100
According to the Table 4.4 above, the study involved different respondents with
different level of education as follows, Secondary education level, 7 equivalent to 23
percent, certificate level 3 equivalent to (10%) of the respondents, those who were
having Diploma level of education were 12 (40%) respondents and the remaining
respondents were having bachelor degree level were 8 equivalent to (27%)
respectively, according to the revealed data it showed that majority of respondents
working at Tanesco Tabora are having diploma level followed by degree level.
However, those with certificate and secondary levels of education are few.
Table 4.5 Working experience of the employees
Working years Frequency Percentage
1-5 years 8 27
6-10 years 7 23
11-20 years 3 10
21+ 12 40
Total 30 100
27
The study intended to see how long the respondents have managed to survive in
working with the electric company, whereby according to the collected data,8
respondents have been working in the company in between 1-5 years, while those
who have worked in between 6-10 years were 7 respondents and those who have
worked in the company between 11-20 years were 3 respondents equivalent to 10%
and the remaining 12 respondents equivalent to 40 percent have been working at the
company for more than 20 years.
Furthermore, the table above showed that, the large number of respondents have
been working at least between 6 years and 21 years where as 22 respondents out of
30 respondents worked in the field for long time.
Table 4.6 Performance of employees in their working area
Motivation packages Frequency Percent
Agreed 18 60
Disagreed 12 40
They don’t know 8 27
Total 30 100
The analysis was done to determine motivation packages available and their
influence on workers performance, whereby the majority of the respondents who
were 18 equivalent to 60.0% agreed that they performs well through motivation
packages they obtain, while other 8 (27%) respondents disagreed with the motivation
getting and the remaining 4 (13%) respondents said that they don’t know about
motivation but what they know is to perform their daily activities at work.
28
Table 4.7Motivation packages available in the study area
Motivation packages Frequency Percent
Provision of Transport Allowance 10 33
Provision of housing allowance 12 40
Performance development 8 27
Total 30 100
According to the study, 10 (33%) of the respondents mentioned transport allowance

as one among the motivation packages offered by Tanesco in Tabora Regional office,
they call it motivation package because such allowances assisted them not only in
transport but also other economic activities, while 12 of the respondents’ equivalent
to (40%) said that they are given housing allowances as motivation package as it
foster them to perform their work on time as being assigned by their supervisors,
effectively and efficiently and the remaining 8 respondents’ equivalent to 27%
respondents argued that they have been awarded performance development
programme (PDP) as allowances and it encouraged them to work hard and meet the
company’s target as indicated basing on the financial year.
4.3.1 Other motivation packages
According to the survey conducted revealed further that, Tanesco in Tabora Regional
office employees are given better salary, provision of education allowance to
employees’ children, provision of health services freely and other as they etc
4.3.2 Better Salary
Employees who managed to answer the questionnaire argued that, Tanesco provides
better salary to them due to the fact that the package of salary given to them enables
them to fulfill their basic needs depending on their life style.
29
4.3.3 Provision of education allowance
Respondents said that provision of education allowance to them is a kind of

motivation as it allows them to widen their mind, an opportunity which they think it
is only be available in the electric company.
4.3.4 Provision of health services freely
Results revealed by the respondents’ shows that, majority of them have said that
provision of health services free is a motivation because not all companies are
providing free medical attention to its workers/employees.
4.4 Description analysis on how motivation package influenced employees’

performance in the study area.
The results revealed that, 63.0% of the respondents said that from the motivation
package they are self developed and interested with their work as well, while 37.0%
said that the motivation package harmonize working environment, as shown in the
Table 4.3 below.
Table 4.8Description on how motivation package influenced employees’

performance
Responses Frequency Percent
Attractive salary 19 63
PDP bonus 11 37
Total 30 100
The study carried out revealed that, motivation packages influenced employees to
perform their duties and tasks with high morale, efficiency and effectiveness.
Furthermore Attractive Salary and PDP bonus as would be explained below
30
influences loyalty, job satisfaction and the many associated working novelties.
Attractive Salary had 63% where as PDP Bonus had 37% of the study carried out
Moreover, according to the study attractive Salary influence employees to perform

their tasks according to their job descriptions, respondents who mentioned attractive
salary as one among the factors influencing employees’ performance were 19
equivalent to 63%. The theory of Abraham Maslow is agreed with the inner
satisfaction of the employees because at each point of respondent’s years with the
company needs is met per the policy of the company. This indicates that there is a
good relation between motivation in terms of Attractive Salary and employees’
performance for Tanesco. This supports Daschler and Ninemeier (1989), findings
that employees are working to satisfy their basic needs, for survival, be economically
secured, get self fulfilling among others. Attractive Salary facilitated satisfaction to
employees.
Their discussion reviews some of employee-related concerns that can be found in the
venue of strategies to employee’s motivation while Bonus to any employee is very
important due to the fact that employee wants to satisfy its basic needs, linked to
survival and security concerns and a desire to belong, to generate positive feelings
from within and from others, and to be Self-fulfilled. Most employees want (a) fair
and consistent company policies in matters affecting them; b) management they can
respect and trust; (c) adequate working relationships with Managers and co-workers;
(d) acceptable salaries and working environment; (e) Appropriate job security
assurance; (f) favourable job status. The respect amongst colleagues always promotes
the employee co-existing in the office and this promotes cordial relationship with
customers.
These findings is in agreement with the findings by La Motta (1995) who found out
that an employee may still not provide better services if there is no motivation, and if
an employee is motivated his or her job performance improves. So, this proves that
motivation leads to better job performance which then leads to delivery of quality
service in workplaces
31
Figure 4 Motivation package influence employee’s performance
37%
Attractive salary
PDP Bonus
63%
4.5 Description analysis on how PDP Bonuses influencing employees

performance.
According to the study conducted at Tanesco, Tabora 17 (57%) of the respondents

mentioned that finance is an incentive to Tanesco employee to meet targeted goal,
while 9 respondents equivalent to 30% argued that PDP bonus is influencing team
player among employees and the remaining 4 (13%) respondents said that through
PDP bonus employees managed to perform their tasks well as shown in the table
below:-
32
Table 4.9 Analysis on how PDP Bonuses influencing employee’s performance.
Responses Frequency Percent
Meet targeted goal 17 57
Team player 9 30
Perform well 4 13
Total 30 100
The study revealed that 17 respondents equivalent to 57% agreed that through PDP
bonus they have been influenced to perform well and meet their targeted goal. This
implies that motivation to any employee is very essential as it motivates them to
perform accordingly to their job descriptions, along in the same line; respondents
who mentioned team player were 9 out of 30 respondents admitted that they are
working in a team because of PDP bonus as one among the motivation package
offered by the company. It implies that through team work workers can cooperate
and performs their tasks effectively while the remaining 4 (13%) respondents
mentioned that they had been performing well because of the PDP bonus. The
question was addressing the third objective of the research which states that to find
out how PDP Bonuses influencing employees’ performance in the study area.
4.6 Link between PDP packages and employees performance
Another important factor to consider on the relationship between PDP packages and
employees performance, is in consideration on wether it motivates
workers/employees when performing their duties. It was revealed that most of the
respondents 16 (53.0%) said it increases job performance while other 9 (30.0%)
respondents responded that through PDP they are managed to work hard and
accomplish their tasks on the required time and the remaining 5 (17.0%) said they
33
have been cooperated well when performing their duties all because of PDP, as
shown in the Figure below:
Figure 5: Relationship between PDP packages and employees performance
17%
job
performance
53% PDP bonus
30%
According to the study carried out, it identifies that PDP packages and employees’
performance are related to each other due to the fact that in order for the employees
to perform well they need bonus. This implies that motivation to any employees is
very essential as it motivates them to perform their work, while other respondents’
revealed employees are working hard and perform effectively since they know that at
the end they will be awarded bonus.
34
CHAPTER FIVE
DISCUSSION OF THE FINDINGS
5.1 Introduction
This chapter presents a summary of the findings, draws, conclusions and puts
forward recommendations based on the research findings. The study assessed the
impact of motivation on individual employee performance as a case study of Tanesco
Tabora. The major focus was to determine the impact of motivation on individual
employees’ performance, the kind of motivation offered to employees and if they are
satisfied with such motivation at Tanesco Tabora Regional office.
5:2 Discussion of the findings
According to the table one from chapter four, the researcher realizes that, 57.0% of
respondents are men and 43.0% respondents are women, this realizes that it is
unequal opportunity in job employment, so due to that, women should look
employment opportunities in Tanesco as an important government agency which can
employ them and improve their living standards as equal to men and as a result give
equal opportunity in job employments to all gender.
Also the researcher analyzes that, the group’s age of all respondents according to the
table 4.2 as shown on previous chapter. It is explained that 60.0% of employees are
aged 18-48 years. This age group is reasonable and well needed in employment
implementation since it is young and still energetic. Further more in tables 4.3 and
4.4 respectively, the researcher focused on the marital status and education of
employees they have before being employed.
The data shows that, 23.0% of the employees are having secondary education level,
while those with certificate education level were 10.0%, respondents with Diploma
level were 40% and the remaining 27.0% have degree level of education.
Moreover the analysis of data in table 4:5, explain the survival rate of employees at
Tanesco whereas respondents have managed to survive in working with the electric
35
company, 8 respondents have been working in the company in between 1-5 years,
while those who have worked in between 6-10 years were 7 respondents and those
who have worked in the company in between 11-20 years were 3 respondents
equivalent to 10% and the remaining 12 respondents equivalent to 40 percent have
been working at the company for more than 20 years
5.3 Discussion on performance of employees in their working areas
Referring to the analysis of data in table 4.6 collected, the study identified motivation
package available in Tanesco whereas the record shows 18 respondents equivalent to
60.0% filled questionnaire said that through motivation package they get they
perform their work activities effectively and efficiently, other 8 (27.0%) respondents
argued that through the available motivation package it influence them to perform
their duties under minimum supervision and the remaining 4 (13.0%) respondents
said that they are influenced with motivation package as a result they are working
hard.
These results are relying to the theory of Abraham Maslow’s Hierarchy of Needs
(1943) was applied to offer an explanation of how motivation influence employees in
the institution. In accordance with Maslow’s theory, which was not specifically
developed to explain behavior in the workplace, employees strive to satisfy their
needs in a hierarchical order.
At the most basic level, an employee is motivated to work in order to satisfy basic
physiological needs for survival, such as having enough money to purchase food.
The next level of need in the hierarchy is safety, which could be interpreted to mean
adequate housing or living in a safe neighborhood.
Although Maslow’s theory is widely known, in the workplace it has proven to be a

poor predictor of employee behavior. Maslow theorized that people will not seek to
satisfy a higher level need until their lower level needs are met. There has been little
empirical support for the idea that employees in the working place strive to meet
their needs only in the hierarchical order prescribed by Maslow (Clayton, 1959).
36
5.4 Discussion on how is motivation package influencing employees’
performance
The record shows that at figure 3: The investigation towards type of motivation was
done so as to determine if respondents are awarded such motivation packages.
According to the findings from the study shows that different kinds of motivation
package available to Tanesco workers, whereby many of respondents said that they
are given housing allowances as a motivation; as the results show that 40.0% of the
respondents said that, they are given housing allowances.
However, the remaining 33.0% of the respondents said that they normally being
given transport allowances and the remaining 27.0% of the respondents argued that
they are given PDP bonus, which is including best worker of the year.
On the other hand, Lindner (1998) in his study found out that good working
conditions cannot motivate the employees in themselves, but can determine the
employees’ performance and productivity. Despite the other factors being mentioned
by respondents, still better salaries and good working conditions are considered to be
the major motivational factors that can influence employees to have better job
performance in the study area
Also table 4.7 explains the motivation package influencing employees’ performance
in the study area, the results revealed that, 63.0% of the respondents said that from
the motivation package they are self developed and interested, while 37.0% said that
the motivation package harmonize working environment.
It is true that interesting work contributes to better job performance because when
employees are interested in their jobs they become committed and more productive
.The findings by Roberts (2005) found out that if the employers set the goals
correctly for each employee, interesting work can become a motivational factor for
the employees to perform better in their jobs. However, it has been discussed earlier
in this study that interesting work can be an important motivator for the employees to
have better job performance. Therefore, this proves that interesting work contributes
to better job performance
37
5.5 Discussion on whether financial is an incentive or not at Tanesco
Furthermore, table 4.8 financial is an incentive to Tanesco employee in Tabora, the

study identifies that 63.0% of the respondents agreed that financial incentive is
improving their job performance once they are given financial incentive they perform
hard their duties compared to previous time when they had no such incentive.
However, the remaining 37.0% of the respondents disagreed that financial is not an
incentive to their job performance but they argued they are motivate by training and
development given to them, this implies that financial incentive to employees is very
important compared to training and development among employees.
These findings are in agreement with the findings by Patrick (2008) who found out
that rewards are so important in motivating employees because rewards can be a
driving force towards better job performance. Alongside the findings of Patrick
(2008), Locke and Latham (1990) while studying on the role of employee’s
motivation on services delivery in South Africa, found out that commitment among
employees is measured to be higher when financial incentives are offered for partial
success and when incentives are given to those who achieve high performance, they
can become an important instrument to encourage the continuance of the desired
behavior. On the other hand, (Robbins, 2003) states that employers who feel that
their employees have lack of motivation should reassess the reward system being
used in the company or institution. So, this proves that financial incentives can
influence better job performance among employees.
Consequently, (Hertzberg, 2000) addressed money particularly referring specifically

to “salary” in his study and analysis. Hertzberg acknowledged the complexity of the
salary issue money, earnings and concluded that money is not a motivator in the way
that the primary motivators are, such as achievement and recognition.
“If salary appears as frequently in the high sequences [‘sequences’ refers to events
causing high or low attitude feelings recalled by interviewees in the study] as it does
in the low sequences however, we find that in the lows [events leading to
dissatisfaction], salary is found almost three times as often in the long-range as in the
38
short-range attitude changes” There was no such bias towards the more important
long-range feelings in the high attitude events.
“When salary occurred as a factor in the lows (causes of dissatisfaction) it revolved

around the unfairness of the wage system within the company. It was the system of
salary administration that was being described or it concerned an advancement that
was not accompanied by a salary increase. In contrast to this, salary was mentioned
in the high stories (events causing satisfaction) as something that went along with a
person’s achievement on the job. It was a form of recognition; it meant more than
money; it meant a job well done; it meant that the individual was progressing in his
work” And Hertzberg concluded about salary example, money, earnings and others.
5.6 Discussion on how PDP Bonuses is influencing employees performance at

TANESCO
The analysis was done to Tanesco workers so as to find how PDP bonus among
employees is influencing working performance in their working area. The
investigation aimed at understanding apart from PDP what other strategies could be
used so as improve employees performance. The study revealed that 17 (57%)
respondents out 30 responded that through PDP they were able to meet the targeted
company’s goals, while 9 (30%) respondents have said that through they are team
player and the remaining 4 (13%) respondents mentioned that they had been
performing well because of the PDP bonus. The question was addressing the third
objective of the research which states that to find out how PDP Bonuses influencing
employees’ performance in the study area.
5.7 Discussion on the relationship between PDP packages and employees

performance
Another important factor to consider on the relationship between PDP packages and
employees performance, is in consideration on weather it motivates
workers/employees when performing their duties. It was revealed that most of the
respondents 16 (53.0%) said it increases job performance while other 9 (30.0%)
39
respondents responded that through PDP they are managed to work hard and
accomplish their tasks on the required time and the remaining 5 (17.0%) said they
have been cooperated well when performing their duties all because of PDP.
These findings are in agreement with the findings of Herman (2007) who came up
with the findings that the spirit of team work among employees can only be
maintained if employees are well motivated in their workplace. And if there is a
spirit of team work among employees, better service can be enhanced. Therefore, this
proves that motivation creates the spirit of teamwork among employees, and finally
leads to better service delivery.
Kashifurrehman (2007) who came up with the findings that motivation is a core
factor for job satisfactions because when employees are well motivated becomes
committed in their jobs, hence, job satisfaction. Therefore, this proves that
motivation leads to job satisfaction among employees.
40
CHAPTER SIX
SUMMARY, CONCLUSIONS AND POLICY IMPLICATIONS
6.1 Introduction
The last chapter of the study has divided into three parts which are summary,
conclusions, and policy implication. In the first part, the researcher started with the
summary and thereafter conclusion, and policy implications.
6.2 Summary
The research on the impact of motivation on individual employee performance as a

case study of Tanesco Tabora identified that once employees are motivated they
normally perform their tasks effectively, whereby 30 respondents participated in the
study as the study aimed at analyzing factors influencing motivation of employee
especially at Tanesco Tabora Regional office.
Findings also revealed that, different kinds of motivation packages were available to
Tanesco workers, whereby many of respondents said that they are given housing
allowances, transport allowances and other incentives furthermore, Lindner (1998) in
his study found out that good working conditions cannot motivate the employees in
themselves, but can determine the employees’ performance and productivity. Despite
the other factors being mentioned by respondents, still better salaries and good
working conditions are considered to be the major motivational factors influenced
employees to have better job performance in the study area
Meanwhile, it is true that interesting work contributes to better job performance

because when employees are interested in their jobs they become committed and
more productive .The findings by Roberts (2005) found out that if the employers set
the goals correctly for each employee, interesting work can become a motivational
factor for the employees to perform better in their jobs. However, it has been
discussed earlier in this study that interesting work can be an important motivator for
the employees to have better job performance. Therefore, this proves that interesting
work contributes to better job performance
41
6.3 Conclusion
On the basis of the findings of this study it can be concluded that motivational factors
such as better remuneration, good working conditions, in-service training, good job
security, and involvement of employees in decision making are major motivational
factors which can lead to better services delivery in different institutions as it brings
positive results on the employee’s performance while de-motivational factors bring
negative impact of employee’s job performance.
Furthermore, the study found out that when employees interact to each other while in
working in favourable environment can for great extent increase job morale among
employees and finally, provide better services in their work places. Also, in this
study it was found out that promotions and growth for employees are good
motivators towards better job performance whereby employees will be able to see the
connections between good performance and promotions, and promotions must match
the needs of the employees.
The study also revealed that when there is a good system of promotions, both the
employee and the organization/company will benefit, not for the present but also for
the future. Furthermore, it was found out in this study that relationships between
employer and employee is an important factor upon provision of quality services in
workplaces whereby the employers should give their employees the required
authority, equipment and information needed to assist them in the performance of
assigned task with greater independence as well as having the self confidence to
effectively and efficiently perform a new task.
Additionally, the study also revealed that employee’s job performance depends on
how employees are committed in their jobs whereby rewards are said to be a catalyst
in provision of quality services in working area when rewards are given to those who
achieve high performance, they can become an important instrument to encourage
the continuance of the desired behavior.
42
Top on the scale of preference of employee motivation are personal, satisfaction,
valuing one's employer, helping others, and having an employer who is supportive
regarding personal time (Rehman, 2006). Finally, the management should make a
conscious effort to align employees’ objectives with what they value most.
6.4 Policy Recommendations
6.4.1 Improve transport allowance
It is recommended that, in order to improve working performance in employers are

required to provide some of the incentives to their workers such as transport
allowances.
6.4.2 Improve housing allowance
Employers should give their employees motivational packages, equipment and

information needed to assist them in the performance of their assigned task to
perform their tasks with great independence as well as self confidence.
6.4.3 Relationship between motivation packages and employees performance
Employers should keep their employees motivated in order to lower the turnover rate
and also create better performance. Employers should take into consideration to
provide employees with better remuneration so as to render quality services and
enhance customer satisfaction.
6.4.4 Promotion of employees
It is recommended that employees’ promotion should be provided to all employees

equally whereby if they are promoted gender consideration is important because it
motivates them to perform their tasks with efficiency and effectiveness in working
areas.
43
6.4.5 Trainings
It is important to develop such an atmosphere where employees are trained, seminars

and good working environment are provided to them because it is very essentials to
employees as it satisfies them to be in position to utilize their full potential in their
jobs.
44
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50
APPENDIX 1
QUESTIONNAIRES
SELF ADMINISTERED QUESTIONNAIRE FOR TANESCO STAFF

(EMPLOYEES) ON ASSESSMENT OF THE IMPACT OF MOTIVATION
ON INDIVIDUAL EMPLOYEE PERFORMANCE, AS A CASE STUDY OF
TANESCO TABORA”
Dear respondents
I kindly, request for your contribution on the title “assessment on the impact of
motivation on individual employee performance as a case study of Tanesco
Tabora”. A thesis will be submitted for the Award of the Master’s Degree in
Business Administration (MBA) of Mzumbe University. Your answer and any other
information that you will provide are very useful for the success of this research, put
tick inside the bracket for what you think is right.
A: PERSONAL INFORMATION
Please tick the appropriate response of your choice
1. Sex: 1. Male 2. Female
2. Age: ……………………………….
3. What is your marital status?
(i) Married [ ] (iii) Widowed [ ]
(ii) Single [ ] (iv) Divorced [ ]
4. Education level:
i. Primary level IV. Diploma
ii. Secondary V. Degree
51
iii. Certificate
F. Others (Specify)……………
5. How many years you have been spent in Tanesco?
(i) 1-5 years [ ] (ii) 6-10 years [ ] (iii) 11-20 [ ] (iv) 21 and above [ ]
6. What motivated you to work for such period of time?
…………………………………………………………………………………………
……………………………………………………………………
SECTION B: QUESTIONS BASED ON EMPLOYEE’S MOTIVATION
7. How does the motivation package available influence your work performance?
.............................................................................................................................
..............................................................................................................................
……………………………………………………………………………………
8. What types of Motivation package available for you as an employee?
a) ---------------------------------------------------------------
b)---------------------------------------------------------------
c)---------------------------------------------------------------
9. How do such motivation packages stimulating yourself and your relationship with
your organization?
…………………………………………………………………………….
……………………………………………………………………………….
10. Is financial an incentive to your job performance?
A.Yes (If the answer is yes, please explain why)…… ………………………………
B.No. Why?............................................................................................
11. How does PDP Bonuses influencing your work performance at your working
place?
52
a)………………………………………………………………………………
b)………………………………………………………………………………
c)………………………………………………………………………………
12.How does PDP Bonuses associated with your job performance?
1…………………………………………………………………………………
2…………………………………………………………………………………
3…………………………………………………………………………………..
Thank you all!
53
MANAGEMENT QUESTIONS
SELF ADMINISTERED QUESTIONNAIRE FOR TANESCO

MANAGEMENT MEMBERS ON ASSESSMENT OF THE IMPACT OF
MOTIVATION ON INDIVIDUAL EMPLOYEE PERFORMANCE, AS A
CASE STUDY OF TANESCO TABORA”
Dear respondents
Please tick the appropriate response of your choice
1. Sex: 1. Male 2. Female
2. Age: ……………………………….
(i) Married [ ] (iii) Widowed [ ]
(ii) Single [ ] (iv) Divorced [ ]
4. Education level:
i. Primary level ii. Secondary iii. Certificate IV. Diploma V. Degree F.

Others (Specify)……………
54
(i) 1-5 years [ ] (ii) 6-10 years [ ] (iii) 11-20 [ ] (iv) 21 and above [ ]
…………………………………………………………………………………………
7. How does the motivation packages available influence your employee’s

performance?
…………………………………………………………………………………………
…………………………………………………………………………………………
8. What kind of Motivation package available for your employees?
a)………………………………….
b)……………………………………
c)……………………………………………
9. How does motivation retain yourself and your relationship with your the
company?
a)…………………………………………………………………
b)………………………………………………………………….
c)…………………………………………………………………..
10. As a manager how does PDP Bonuses influencing your work performance?
a)………………………………………………………………………………
b)………………………………………………………………………………
11. How does PDP Bonuses associated with your employees job performance?
a)………………………………………………………………………………………
55
DODOSO KWA WAFANYAKAZI WA TANESCO TABORA LA
KUTAMBUA JUU YA MATOKEO YA MOTISHA KWA MFANYAKAZI
KWENYE UFANISI WA KAZI.
Ndugu;
Unaombwa kutoa mchango wako wa mawazo yako katika utafiti unaofanywa juu ya
ni matokeo ya motisha kwa mfanyakazi anapokuwa kazini, matokeo haya yatasaidia
katika utafiti huu wa shahada ya uzamili wa Chuo Kikuu cha Mzumbe tawi la
Mwanza. Majibu yawekewe alama ya v, na utakayotoa yatachukuliwa kwa usiri.
A: TAARIFA BINAFSI
Weka alama ya vema katika jibu lako
1. Jinsia: a. Mme b. Mke
2. Umri: ……………………………….
3. Je wasifu wako wa wahusiano ni upi?
(i) oa/olewa [ ] (iii) Mjane [ ]
(ii) Sijaoa/kuolewa [ ] (iv) Nimeachika [ ]
4. Kiwango chako cha elimu:
i. Elimu ya msingi IV. Stashahada
ii. Elimu ya sekondari V. Shahada
iii. Cheti
F. Nyingineyo……………
56
5. Umekuwa kazini kwa muda gani?
(i) Miaka 1-5 [ ] (ii) Miaka 6-10 [ ] (iii) Miaka 11-20 [ ] (iv) Zaidi ya
miaka 21 [ ]
6. Nini kilikufanya ukafanya kazi kwa muda wote huo?
…………………………………………………………………………………………
Sehemu B: Maswali juu ya motisha kwa wafanyakazi
7. Ni jinsi gani motisha inashawishi wafanyakazi kufanya kazi kwa ufanisi

kazini?.............................................................................................................................
.........................................................................................................................................
8. Je unafahamu nini kuhusu motisha? ..........................................................
9. Ni aina gani ya motisha zipo kwa ajili ya kumhamasisha mfanyakazi kwenye

utendaji kazi wake?
A.…………………………….
B.……………………………..
10. Je ni kwa namna gani Bonasi ya PDP inaathiri utendaji kazi wako uwapo kazini?
a) ---------------------------------------------------------------
b)---------------------------------------------------------------
c)---------------------------------------------------------------
11. Je ni kwa namna gani Bonasi ya PDP inahusiana na utendaji kazi wako?
a)………………………………………………………………………………
b)………………………………………………………………………………
Asante sana kwa ushirikiano wako
57
APPENDIX 2
STRUCTURED INTERVIEW
STRUCTURED INTERVIEW FOR TANESCO STAFF (EMPLOYEES) ON

ASSESSMENT OF THE IMPACT OF MOTIVATION ON INDIVIDUAL
EMPLOYEE PERFORMANCE, AS A CASE STUDY OF TANESCO
TABORA”
Dear respondents
information that you will provide are very useful for the success of this research.
1. What is your sex?.................
2. What is your age?................
………………………………..
4. What is your Education level?
………………………………………………….
……………………………………………………………………..
58
SECTION B: QUESTIONS BASED ON EMPLOYEE’S MOTIVATION
7. How does the motivation package available influence your work performance?
...............................................................................................................................
................................................................................................................................
…………………………………………………………………………………………
8. What types of Motivation package available for you as an employee?
…………………………………………………………………………………………
…………………………………………………………………………………………
9. How do such motivation packages stimulating yourself and your relationship with
your organization?
………………………………………………………………………………
……………………………………………………………………………….
……………………………………………………………………………….
10. Is financial an incentive to your job performance? Explain
…………………………………………………………………………………………
…………………………………………………………………………………………
11. How does PDP Bonuses influencing your work performance at your working
place?
………………………………………………………………………………
59
………………………………………………………………………………
………………………………………………………………………………
12.How does PDP Bonuses associated with your job performance?
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………..
Thank you all!
60
STUCTURED INTERVIEW
STRUCTURED INTERVIEW FOR TANESCO MANAGEMENT MEMBERS

ON ASSESSMENT OF THE IMPACT OF MOTIVATION ON INDIVIDUAL
EMPLOYEE PERFORMANCE, AS A CASE STUDY OF TANESCO
TABORA”
Dear respondents
1. What is your sex?................
2.What is your age?
………………………….
…………………………………………
4. What is your level of education?.........................
…………………………………………………………….
…………………………………………………………………………………………
61
B: QUESTIONS BASED ON EMPLOYEE’S MOTIVATION
7. How does the motivation package available influence your employee’s

performance?
…………………………………………………………………………………………
8. What kind of Motivation package available for your employees?
…………………………………………..
………………………………………….
……………………………………………
9. How does motivation retain your relationship with your employees?
…………………………………………………………………
………………………………………………………………….
…………………………………………………………………..
10. As a manager how does PDP Bonuses influencing your work performance?
………………………………………………………………………………
………………………………………………………………………………
11. How does PDP Bonuses associated with your employees job performance?
…………………………………………………………………………………………
Thank you all!
62

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AN ASSESSMENT ON THE IMPACT OF MOTIVATION

ON EMPLOYEE PERFORMANCE IN TANZANIA: A

A Dissertation Submitted in Partial Fulfillment of the Requirement for the

Accepted for the Board of……………………

Secondly, I would like to express my heartfelt gratitude and give thanks to my

May Almighty God bless them all!

FIFO - First In First out

PDP - Performance Development Programme

SPSS - Statistical Package for Social Science

TANESCO - Tanzania Electric Supply Company

This research intended to assess the impact of motivation on employee performance

The study on the impact of motivation on employees’ performance specifically at

CHAPTER ONE ........................................................................................................ 1

CHAPTER TWO ....................................................................................................... 5

CHAPTER SIX ........................................................................................................ 41

Table 4.1 Respondents distribution by Sex................................................................ 25

This chapter describes the background information of the research problem,

1.1 Background of the Study

However, Herzberg (1968) argues that, money is not a motivator, It is an hygiene

Following this situation, lack of adequate motivation was reported in Tanzania to

Furthermore empirical evidence by (Chambuko, 2008); Adams, (2002) noted that

1.3.1 General Objective

1.3.2 Specific Objectives

1.4 Research Questions

1.5 Significance of the Study

i. This study will make a number of contributions to different organizations,

ii. Furthermore, this study will help the managers/administrators to understand

degree and wide the knowledge of motivation matters to employees in

working areas hence increase effectiveness and efficiency.

Motivation has been defined as an internal drive to satisfy an unsatisfied need

According to Chen (2004) performance refers to the accomplishment of a given task

2.1.3 Employee performance

Employee performance involves quality and quantity of output, presence at work,

2.2 Theoretical review

Various motivational theorists such as Abraham Maslow’s (1979) hierarchy of needs

2.2.1 Maslow’s hierarchy of needs theory

Figure 1: Maslow’s Hierarchy of Need

Source: Maslow’s theory (1943)

2.2.2 McClelland’s Need Theory

According to McClelland (1961), the presence of these motives or drives in an

2.2.3 Personality Theory

2.2.5 Equity Theory

According to Adam’s (1996) inputs such as skill, tolerance, determination and

Figure 2: Adam’s Equity Theory

Source: Edwards, P (1999)

2.2.7 ERG Theory

ERG theory states that an employee’s behavior is motivated simultaneously by more

ERG theory applies the satisfaction-progression process described in Maslow’s needs

2.3 Empirical study

Motivated employees tend to play essential roles within an organization whereby

However, job performance also depends on individual capability and environment

2.4. Performance Development Programme Bonuses

2.4.1 People Perspective

2.4.2 Technical Aspects

Major concerns under Technical Perspective is to reinforce Revenue protection team,

Under customers’ Perspective the main intention is provision of higher Quality

2.4.4 Financial Perspective

The key issues used during evaluation of Performance Development Programme in

2.5 Knowledge gap