The effect of incentive scheme on public enterprises employees’ performance in Tanzania: a case of national housing corporation, Dar es Salaam

The aim of this study was to examine the effects of incentive scheme on the employees‟ performance in the Public Enterprises environment in Tanzania. Four research questions were raised to guide the study. The population of the study was 60 employees. They consisted heads of departments, units and general staff of NHC from various units and departments. Stratified sampling method was used where by the population was broken up by department and a random sample was taken from each department. Data were collected through questionnaires, interviews documentation and observation. The data collected were analyzed using both quantitative and qualitative where proposition derived from the research questions defined and description of the case were developed. The findings revealed that incentive scheme has a great positive effect on employees‟ performance. The findings reveal that pay incentive takes the first position in effecting public workers effective and efficiency performance followed by indirect financial incentives. On the other hand, direct financial incentives took the third place and financial incentives took the last position. The findings also revealed that most of the employees ranked pay incentives as their first preference and indirect financial incentives as the least. The implication of the findings is that, the incentive scheme prevailing at NHC provides pale reflection of what the organization can achieve from introducing incentive scheme. It is recommended that NHC has to take active measures and mechanisms to tackle some weaknesses found during survey which include the weaknesses in performance feedback to employees, lack of employees support in training and education and ineffective communication about incentives provided.