Compensation practices and equity dimensions on public servants of Tanzania: a case of Tanzania civil aviation authority (TCAA)

The study intended to explore and present the compensation practices and equity dimension on Public Servants of Tanzania in order to achieve the following study aspirations: To investigate the internal equity of the employees of TCAA, to ascertain the effect of individual equity on the organizational performance and to examine the external equity between TCAA and other organizations within the labour market. The Sample design consisted of the elementary units of employees of TCAA in Dar es salaam region who were grouped according to their gender, age, occupation, organization tenure and academic qualification, the population was the collection of all TCAA employees (population of individuals) in Tanzania. Using convenience sampling technique a sample of 100 employees was taken and the method used in the research was a descriptive survey. Primary data were gathered qualitatively through questionnaire method of data collection. The findings from analysis of the current situation of TCAA in general, and compensation policy in particular, had confirmed to the researcher that the equity dimensions were poorly designed and implemented. Although performance appraisals and job evaluations were conducted in a regular base, what was lacking was good blueprint for and effective implementation. Moreover TCAA had not been engaged in conducting the salary survey for addressing the external equity. Drawing reference from the equity theory, the management should use all forms of equity dimension comparisons since this is the best way of insuring the motivational impact of compensation. All decisions involving equity or inequity ought to involve comparison of an employee with other employees within the organization and also similar employees outside the organization, taking into consideration that the employee’s reactions to inequity can take many damaging forms. Each organization has its unique compensation regime, reflecting its position in the relevant industry. Though there was no overall plan on how to best improve workers motivation and satisfaction regarding the compensation practices, however, developing an effective and equitable remuneration scheme was recommended for all organizations and TCAA in particular. This should include the employers to create a number of rewards aimed at eliciting the employees’ behavior that are beneficial to the organization and important to achieve its organizational objectives; employees’ capabilities and performance to be considered in designing reward schemes. Employees to realize that the rewards offered are commensurate to the effort they exert in doing their job and the government to reduce the wage disparity especially between the highly paid employees and the minimum wage earners while reducing the income tax and other deductions associated with the basic salary of a public sector employee.