Effective Utilizations of Performance Appraisal - University of Dar es

230 Pages·2011·1.21 MB·English

UDBS 479
FACTORS THAT INHIBIT EFFECTIVE UTILISATION OF PERFORMANCE
APPRAISAL:
The Case of Selected Local NGOs Based in Dar es Salaam
Anna Onesmo Mrema
Master of Business Administration (Human Resources Management), October 2007
This research was conducted in partial fulfilment for the requirements of Masters of Business Administration.
The research was about Factors that inhibit the effective utilization of performance appraisal: The Case
Study of Selected NGOs Based in Dar es Salaam. This was an attempt to find out the performance
appraisal practice in LNGOs, and challenges that they are facing in administering formal performance
appraisal to their employees and recommend best approaches to overcome such challenges.
The researcher employed descriptive design with clear and specific narration of facts with an overview
of the LNGOs working context in Tanzania.
The research discovered that, LNGOs use traditional secretive approach to Performance Appraisal
(PA) and that; there is no formal PA programme in most of LNGOs. These practices and approaches are
outdated and highly discouraged by most human resources professionals, LNGOs staff and other
stakeholders. The researcher noted that formal and open PA practices are the most appropriate and
mostly desired by LNGOs staff.
The researcher recommended that LNGOs, the donor community and the government have an important
role to play to collectively promote effective utilization of performance appraisal in LNGOs. This is possible
by making PA programme a mandatory undertaking to be reported on a yearly basis the same as financial
and development programme activities report
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THE IMPACT OF DONOR FUNDS INFLOWS ON MONEY SUPPLY IN TANZANIA
George Bantula Salvatory Kaindoah
Master of Business Administration (Finance), November 2007
The objective of this study was to investigate the impact of donor funds inflows on money supply and
policy response. More specifically, the study intended to examine the effect of donor funds inflows on
money supply and inflation, and determining the degree of significance of the donor funds inflows on the
reserve money. The effect of donor funds inflows on real gross product was also investigated. Correlation
coefficients and regression results were used during the discussion in this study. While the relationship
between donor funds inflows and money supply was strongly proved to be positive and significant at one
percent level, the relationship between donor funds inflows and inflation was proved to be negative and
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significant at five percent level. Therefore, the hypothesis that there is positive relationship between donor
funds inflows and inflation was strongly rejected. Hence an increase in donor funds inflows in Tanzania did
not cause an increase in the rate of inflation.
The relationship between RGDP and donor funds inflows was strongly proved to be positive and
significant at one percent level. Therefore the hypothesis that donor funds inflows have a positive effect on
Tanzania economy was not rejected at all. The study suggests that if the economy is faced with large donor
funds inflows and the cost of sterilization seems to outweigh the bank’s income, and then policy response
has to be extended to deploy some of the options below depending on their enforcement costs.
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THE IMPACT OF MANAGEMENT PRACTICES ON SERVICE QUALITY AS
PERCEIVED BY CUSTOMERS
The Case of Tanzania Telecommunication Company Limited (TTCL)
Hidaya Hamis
Master of Business Administration (Marketing), November 2007
This study examines some aspects of management practices that can impact service quality perceptions.
The major research question was whether the results could help to explain the general level of service
quality as perceived by customers in the context of Tanzania Telecommunications Company Limited (TTCL).
A study of fifty customers and fifty employees in five TTCL regional offices was used to analyze the
effects on service quality of some management practices. The selected management practices include:
managers’ risk aversion; centralization; and market based reward system.
The analysis was made using simple and multiple linear regression analysis and two basic findings
emerged. First, interdepartmental conflict and interdepartmental connectedness appear to influence the
level of service quality.
Second, the results appear to suggest that interdepartmental conflict and interdepartmental connectedness
can be improved by a host of actions, including a management style that exhibits less risk aversion, greater
empowerment of employees and the development of a market-based reward structure to create common
incentives.
Generally, in order to improve service quality, organizations must work to reduce conflict and increase
connectedness among departmental groupings. Specific managerial implications and direction for further
research have been discussed.
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UDBS 481
THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATION
PERFORMANCE
The Case of Vodacom Limited, Tanzania Breweries Limited and Barrick Gold Mining
Company
Mgema Masunga
Master of Business Administration (Human Resources Management), November 2007
In Tanzania, in the post 1990 period after the introduction of the market economy, private sectors were
allowed to engage fully in business activities. That resulted into increased competition among different firms
producing and selling products with similar use such a pattern forced firms to design different marketing
strategies aimed at penetrating different market segments, and increase their production, sales as well as
profits.
This study investigated the impact of firms’ corporate social responsibilities on organization performance
in Tanzania in the post 1990 period. A sample of three firms, namely, Vodacom Tanzania Limited, Tanzania
Breweries Limited and Barrick Gold Mining Company Ltd were used as representatives. Overall findings
revealed that increasing firms’ corporate social responsibilities and others have helped to advertise as well
as market products. Hence, have increased sales and profits amidst stiff competitions, though their social
responsibilities have been limited mainly to urban areas.
It is recommended that measures be undertaken by all stakeholders in order to enable more people in
remote rural areas also to benefit from their activities. The Government should increase tax incentives on
products offered by these companies as part of their packages of corporate social responsibilities. Measures
should be undertaken to increase employment and disposable incomes for households in order to increase
households’ purchasing power. Lastly, there should be formation of one independent NGO body, which
will supervise and coordinate the activities for organizations engaged in corporate social responsibilities.
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DEVELOPMENT AND CHALLENGES OF DERIVATIVE MARKETS IN TANZANIA
The Case of Derivatives in Commercial Banks
Mbajo Pius Mchomvu
Master of Business Administration (Finance), November 2007
The aim of this study was to get insight of development and challenges of derivatives market in Tanzania.
The study used primary data whereby sixteen commercial banks were interviewed using Questionnaires.
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The study revealed that it is right time to exercise derivatives in Tanzania and common derivatives used in
Tanzania are; foreign exchange swap, forwards, options, interest swaps, futures and forward rate agreement.
The main participants of derivatives are commercial banks and big corporate customers. The study also
revealed that the regulatory body hasn’t yet put enough effort to promote the derivative markets in Tanzania.
It is recommended that the Tanzania Financial market will not develop fully if banks and big corporate
companies are not taking active part in the modern financial products like these. If banks utilize derivatives
fully, then, it would help even to stabilize our Tanzanian Shillings against major currencies. It is also
recommended that proper skills are required and the Central Bank should play the active role to engineer
the whole exercise of derivative market development in Tanzania
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MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) ACCESS TO
COMMERCIAL BANKS FINANCE IN TANZANIA
The Case of Dar Es Salaam based MSMEs and Commercial Banks
Narcis Daudi
Master of Business Administration (Finance), October 2006
The main objective of this study was to assess Micro, Small and Medium Enterprises (MSMEs) accesses
to financial services in Tanzania, with special focus on Commercial Banks (CB). The study was conducted
for Dar es Salaam based Commercial banks and MSMEs as a sample group through use of questionnaires,
Observation and interviews. 43 participants were involved.
Specifically, the study sought to Firstly, “Assess the extent of Commercial banks loans are made
available to MSMEs in Tanzania”. Secondary, “Establish the cost/price at which commercial banks’ finance
is accessible by MSMEs”. Thirdly, “Find out the range of finance that can be accessed by MSMEs”.
Fourth, “Examine flexibility on accessing commercial banks finance by MSMEs”. Fifthly “Assess the
impact of limited access to these credits on MSMEs performance” and lastly to put forward
recommendations for adoption by both parties in the study.
It was found that, about 70% of the bank’s users are aware of the availability of commercial banks
loans but the problem is education and awareness by MSMEs owners. This implies that, small business
owners should make extra steps in learning what are the necessary requirements and the cost involved. On
the other hand, the government should improve the current policies to incorporate the newly ones focusing
specifically on access to Commercial Banks funds that is deregulation. Also assist on introducing more
schemes and training centers for the development of the sector and economic improvement.
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UDBS 483
FACTORS AFFECTING PERFORMANCE OF SMALL LOCAL ENGINEERING
CONSULTING FIRMS IN TANZANIA
Phillip Makota
Master of Business Administration (Marketing), November 2006
The research sought to establish factors affecting performance of small local engineering consulting firms in
Tanzania. In so doing, engineers were asked whether they find guidelines for evaluation of technical proposals
affects small firms during tendering for various projects in the country, whether small firms have equal
chances to meet threshold (benchmarks) as is the case to large local or foreign firms. The research also
looked at among other things whether firms association may assist small firms in future projects, establishing
whether engineers perceive there is a need to classify engineering consulting firms. Lastly, the research
ought to establish what engineers perceive as main obstacles to the development of engineering consulting
firms in Tanzania.
The research was able to establish that engineers perceive that qualifications and experience as well as
quality of proposed staff are among major obstacles to small firms when their technical proposals are
evaluated. Engineers find that small local firms have narrow chances to meet threshold when competing for
various projects. That being the case, they do agree that there is a need to classify engineering consulting
firms. Engineers do agree that when small firms associate with large local or foreign firms their capacity
increases due to knowledge transfer from large to small firms. Generally, the research was able to achieve
the intended goal; henceforth it is highly emphasised that individual registered engineers, IET, ERB, ACET
and others to join hands in developing solutions to address problems mentioned in this research.
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CONTRIBUTION OF MICRO CREDIT TO POVERTY REDUCTION IN THE RURAL
SOCIETY OF TANZANIA
The Case of Mbinga Community Bank
Sayuni Mbwilo
Master of Business Administration (Finance), October 2007
Establishment of microfinance institutions for the purpose of mobilizing savings and disbursing micro credit
to the poor in developing countries has been among the strategies to alleviate poverty. This study is intended
to find out whether community banks in Tanzania contribute to the growth of income, improving wellbeing
and reducing capability poverty of the small scale farmers.
In collecting the primary data, questionnaire was administered to 94 randomly selected households of five
villages of Mbinga district namely; Mkwaya, Kindimba, Mbangamao, Tukuzi and Ngima. Data analysis
was done by SPSS software. Cross tabulation, one way and multiple comparisons ANOVA tests were
also done.
The empirical evidence of the study indicates that micro credit changed the life of the poor in a positive
way. Clients who borrowed at least once from MCB have relatively higher income, investment in productive
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assets, accessibility to education and food sufficiency. Frequency of borrowing have been found to influence
the impact of the loan to poverty reduction because those clients who borrowed more frequently were
found to be more well off than the new and the prospective borrowers.
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FACTORS INFLUENCING CUSTOMER SATISFACTION WITH INSURANCE
COMPANIES
A Case of Tanzania
Lucas Mimbi
Master of Business Administration (Marketing), October 2007
The objective of the study was to investigate the factors influencing customer satisfaction with insurance
companies. Professional services are credence products with very few tangible cues to signal quality. In
developing a tool for the insurance context, the 21 attributes of service quality were operationalised generating
five dimensions which were identified as Assurance, Tangibles, Reliability, Responsiveness and Empathy.
A cross-section of 121 customers of insurance policies from different companies in Tanzania provided
data on the way they rated their Insurance Companies in respect to the features and services they offer.
Using these ratings, customer satisfaction levels were calculated.
This study found that Assurance and Reliability dimensions have a significant influence on customer
satisfaction with insurance companies, suggesting that these two dimensions were regarded by policyholders
as the most crucial towards meeting customer satisfaction. Managers should look into the two dimensions
very closely as they are important to customers. Improvement of service quality should be in this order
Reliability, Assurance, Responsiveness, Empathy, Tangibles.
Growing evidence that customer satisfaction drives organizations’ economic health means that managers
can no longer afford to ignore customers’ feedback. Rather, organization-specific examination of dimensions
is vital and useful so that managers are able to assess and determine the precise level of both customer
satisfaction and its influencing factors. The proposed exploratory instrument used here to measure customer
satisfaction with the insurance industry could serve as a starting point for other studies in the professional
services domain.
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THE EFFECTIVENESS OF AGENCY FORCE IN FINANCIAL INSTITUTIONS
The Case of National Insurance Corporation of (T) Limited (NIC)
Vivian Jonathan Mmari
Master of Business Administration (Finance), October 2007
This study investigated the effectiveness of agency force in financial institutions with specific reference to
the National Insurance Corporation of Tanzania Limited (NIC). Over the years the NIC has been using
UDBS 485
substantial amount of money and other resources on its agency force. Until now no research has been
done to ascertain the effectiveness of the agency force. To achieve the objectives and questions raised in
the research the study gathered a variety of data in the above mentioned aspects of agency force
effectiveness. Data was collected through interview, observations, questionnaires, NIC documents review,
and news papers. Likewise literature review and empirical research work were visited in order to establish
concepts and theories pertaining to the study. The findings show that the agency force contribution to NIC
overall performance is not effective especially under the liberalized market. Following the Insurance Act of
1996, now there are 16 private insurance companies conducting insurance business in Tanzania. Factors
that contributed to that situation are related to; NIC weakness, agency force and the existing regulatory
mechanism. Thus the corporation is recommended to change its current organization structure, office
layout, and system of recruiting and controlling agents, computerize business operations and adequately
support its agents and more to finalize the privatization process.
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DETERMINANT FACTORS OF LOW COVERAGE OF SOCIAL SECURITY SCHEMES
IN TANZANIA
Assumpta Maina
Master of Business Administration (Finance), October 2007
Socio-economic risks and uncertainties in human life result in the need for social security. Social security
schemes are the most common formal security schemes. In Tanzania, there are six major social security
institutions; five are in Tanzania mainland and one in Zanzibar. Those operating in Tanzania mainland are the
Parastatal Pensions Fund (PPF), National Social Security Fund (NSSF), the Public Service Pension Fund
(PSPF), Local Authorities Provident Fund (LAPF) and Government Employees Provident Fund (GEPF).
Despite the existence of the five pension institutions in Tanzania mainland and existence of the social
security framework; the level of coverage is still very low, hence the general objective of this research was
to determine factors leading to low level of coverage to social security in Tanzania.
A total of 131 questionnaire responses were obtained out of which 91 were from employees and 20
from institutions. Secondary data was obtained from various libraries including PPF data base. Data was
analyzed focusing on the above mentioned objective while trying to answer the accompanying specific
questions.
The following five factors came out clearly as strongly hindering the social security scheme coverage:
The reduced purchasing power of benefits offered; Workers un-willingness to contribute to social security
schemes due to paucity of their incomes; Lack of knowledge of the types of benefits offered by social
security schemes; Members delays in receiving benefits when due and failure by security benefits to meet
members’ immediate priority needs.
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486 University of Dar es Salaam
FACTORS HINDERING THE EFFECTIVENESS OF STAFF TRAINING
The Case of Tanzania Postal Bank (TPB)
Gabriel Mwajombe
Master of Business Administration, November 2007
This study was conducted to investigate the factors hindering the effectiveness of staff training. The study
based on the case study approach that focused on the Tanzania Postal Bank. A Stratified technique was
used to select respondents from both management and non-management levels. 51 respondents were
sampled and administered with questionnaires. Personal interviews were conducted with the human resources
officer. Data were analyzed using SPSS and were presented in tabular form, relative frequencies, charts
and figures.
The factors behind the ineffective staff training were; lack of autonomous training unit that coordinates
training in the bank, insufficient budget allocated for training function, poor involvement of employees
particularly in the TNA process, the criteria for trainees’ selection are not clearly known, and are not given
a chance to determine what kind of training they actually need, the training center is poorly financed and
managed together with the poor methods used for training( classroom based), lack of competent human
resources practitioners and poor top management support. All these have an adverse effect in staff training.
The study recommends improving the approach used to carry out training programs and promoting
transparency in the whole process of training. The bank should accrue more funds for staff training, train all
managers and supervisors through the TNA process. Further the bank should form an autonomous unit
dealing with staff training and development function.
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FACTORS INFLUENCING SMALL AND MEDIUM ENTERPRISES DEVELOPMENT IN
TANZANIA
An Exploratory Study of Entrepreneur and Enterprise Characteristics
Sarah Isaac Ngomuo
Master of Business Administration (Finance), November 2007
This study sought to explore the influence of characteristics of both the entrepreneur and the enterprise on
firm performance in Tanzania. Variables covered in the study are age of the entrepreneur, education level,
ethnicity, cultural heritage, previous experience, gender, five motivation variables, firm’s age, firm’s industrial
sector, firm’s legal status and number of employees. The study combined quantitative and qualitative methods
of enquiry, comprising questionnaires, interviews and observations. Descriptive analysis was used to identify
the characteristics of the study population .The chi-square test was used to identify the significant association
of variables which influence firm performance.
The results reveal that SME performance is influenced by entrepreneur characteristics namely; age,
level of education; ethnicity, previous experience and three motivational variables, namely desire to be
UDBS 487
independent, finance and self-fulfillment. The following entrepreneur characteristics, such as family
background in business, gender and two motivational variables (job satisfaction and contribution to economic
development) did not show any influence on firm performance. Enterprise characteristics observed to
influence firm performance include age, legal status and size. However, firm’s industrial sector was not
observed to have an influence on the performance of the firm.
Furthermore, the study revealed that in Tanzania, SMEs continue to operate in a chaotic environment,
where policies are inconsistent and regulatory procedures are stringent. Inadequate access to finance and
training were also perceived as being a great hindrance to their performance.
The study recommended that regulatory institutions need to create for SMEs a friendlier environment;
the policy environment should be made more favourable to SMEs; and Enterprise-Based Training. Moreover,
financial institutions should review their loan scheme so as to enable SMEs to have ready access to capital.
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AN ASSESSMENT OF MICROCREDIT PERFORMANCE ON POVERTY REDUCTION
IN TANZANIA
The Case of Posta na Simu SACCOS and PRIDE -Tanzania
Victor Reginald Sungusia
Master of Business Administration (Finance), November 2007
The overall objective of this study was to assess the impact of micro credit on poverty reduction in Tanzania.
The study investigated two Microfinance Institutions in Tanzania, PRIDE and Posta na Simu SACCOS
where 100 customers from both PRIDE and Posta na Simu SACCOS were interviewed. At the same time
10 respondents credit providers were interviewed. To tackle the research objective the study employed
four research propositions: poor people access credit easily from microcredit institutions; conditions and
procedures set favours poor people; mmicro-credit finance contributed to an increase in income to credit
receivers and micro-credit finance contributed to an increase in employment opportunities
Findings show that Microfinance Institutions lack policy and regulatory environment, have insufficient
access to information and weak human and institutional capacity. Therefore, as a result of these impediments
access to microcredit remains limited to poor population in Tanzania. It was observed that conditions and
procedures set do not favour the poor and low-income earner clients. Therefore, the proposition that poor
people do access credit easily was not supported by the results from this study. The results from the study
indicate that both income and employment opportunities increased significantly after started borrowing
from microfinance institutions. Therefore, the results from this study indicate that micro credit institutions
have created more employment opportunities.
It was recommended that Tanzania needs to intensify its efforts in encouraging entrepreneurship formulation
through credit strategy. In order to improve credit growth through Microfinance Institutions, Tanzania
should initiate market opportunities for product/services through promoting business activities, moreover
efforts are needed to simplify the procedures to start and run business through credit facilities. Creation of
awareness is another area needs to be put into consideration, because most people are not aware of the
availability of credit facilities.
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488 University of Dar es Salaam
PERFORMANCE IN TANZANIA
A Study of Selected Enterprises
Salhina Mussa Mkumba
Master of Business Administration (Finance), November 2007
This study assesses the effectiveness of privatization on enterprise performance in Tanzania by considering
the effect of private ownership on enterprise sales revenue, Profit Before Interest and Taxes (PBIT), and
production volume, which are variables used in this study. The study has been carried out as a result of
contradicting view points of various people on the subject of privatization in Tanzania. Some people are of
the opinion that privatization has been successful in improving performance of enterprises while others
maintain that there is no neutral evidence to the effect.
The study uses a sample of 16 privatized enterprises. It was conducted by reviewing information on
performance of firms before they were privatized. This information was mostly retrieved from the PSRC
archives. The pre – privatization information is processed to come up with an average for each variable
which is compared with the average processed from the post privatization data. Post privatization information
was obtained by circulation of questionnaires to the privatized enterprises and review of secondary
documents. The averages for both pre and post privatization periods were subjected to the sign test and
hypotheses are tested.
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FACTORS INFLUENCING PURCHASING COST IN PROCUREMENT SYSTEM
The Case of Public Institutions in Tanzania
Jackson Anyisile Mwampanga Mwaigonela
Master of Business Administration (Finance), November 2007
Most of public procurement system is characterized by frequently emergency orders, poor documentation
of records, poor purchasing procedures, lack of consolidated purchase and lack of effective communication
between the management and procurement sections in government institutions. The main objective of this
study was to determine factors influencing purchasing in procurement system. The cross sectional study
survey was conducted in Dar es Salaam region and involved different procurement officers from government
institutions. Primary and secondary data were obtained through structured questionnaires and different
publications. The study was designed to use multiple regression model to establish the relationship among
the variables, whereby there are more than two independent variables. Independent variables were obtained
by using simple model developed by researcher. The purpose of developing this model was to obtain the
weighted average of independent variables since each independent variable has its own weight and have
different ranks according to the perceptions and opinions of those who filled the questionnaires.
Findings show that there is a relationship between the costs associated with lack of effective
communication and purchasing cost. Similarly the study found direct relationship between costs associated