i

THE EFFECTS OF HUMAN RESOURCE MANAGEMENT PRACTICES ON

EMPLOYEE’S JOB SATISFACTION IN MONDULI DISTRICT COUNCIL

RAMADHANI MASHAKA RAMADHANI

A DISSERTATION SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE OF MASTER OF HUMAN RESOURCE

MANAGEMENT OF THE OPEN UNIVERSITY OF TANZANIA

2017
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CERTIFICATION

The undersigned certifies that he has read and hereby recommends for acceptance by

the Open University of Tanzania the dissertation entitled: “The Effect of Human

Resource Management Practices on Employees’ Job Satisfaction in Monduli

District Council”.

………………………………….

Dr. Proches M. K Ngatuni

Supervisor

………………………………..

Date
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COPYRIGHT

No part of this dissertation may be reproduced, stored in any retrieval system, or transmitted in

any form or by any means, electronic, mechanical, photocopying, recording or otherwise

without prior written permission of the author or the open university of Tanzania in that behalf.
 iv

DECLARATION

I Ramadhani Mashaka Ramadhani, do hereby declare that this dissertation is my

own original work and that is it has not been submitted for a similar degree in any

university.

………………………………

Signature

………………………..

Date
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AKNOWLEDGEMENT

First of all, I thank the God for being with me in all my academic activities and in all

my life. The fulfillment of this report involves various people. I would like to express

my appreciation to all people for their support, hardworking, and great efforts which

help me in preparation and compilation of this report. I would like to express my

deepest gratitude to my supervisor Dr. Proches. M. K. Ngatuni, for his encouragement,

guidance, advice, and great supervision to ensure this work is achieved. I thank all staff

of Faculty of Business Management at the Open University of Tanzania. I also thank

Mr. S. Ulaya – The Executive Director of Monduli District Council for allowing me to

carry out research project in this organization and all staff of the Council who served as

my respondents by spending their time to fill my questionnaires. Special thanks go to

my father Mashaka Ramadhani, Salum Mashaka, Kamana Suleiman, Obassy

Nguvillah, Julius Sikoi, Denis Mgie, Aurelian Malamsha, Glory Mbise, Cathrine

Maembe, Sarah G. Swai, Joseph C. Wilson, Joseph E. Maleckela, Obeid A Mpombwe

and my classmate Asantiel Kawiche. It is not possible to name those people who

support me in production of this report I thank all people who encourage and contribute

in preparations of this report.

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ABSTRACT

The main objective of this study was to examine the effects of human resource

management practices on employee’s job satisfaction in Monduli District Council. A

cross-sectional quantitative survey research strategy was adopted. A sample of 100

respondents was selected using stratified sampling techniques. Data were collected

using questionnaires with three parts- demographic information’s with 6 items, HRM

practices - training and development with 4 items, performance appraisal with 5 items

and compensation with 5 items and job satisfaction with 36 items. Analysis was carried

out using descriptive statistics, correlation and multiple regression analysis. The results

of the study revealed that there was a significant positive relationship between training

and development and job satisfaction but not for compensation and performance

appraisal. It is recommended that that the government and other stakeholders should

take consideration on the issue of training and development of its employees in order to

improve their levels of satisfaction with their jobs.

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TABLE OF CONTENTS

CERTIFICATION ....................................................................................................... ii
COPYRIGHT ............................................................................................................. iii
DECLARATION........................................................................................................ iv
AKNOWLEDGEMENT...............................................................................................v
ABSTRACT ............................................................................................................... vi
LIST OF TABLES .......................................................................................................x
LIST OF ABBREVIATION ...................................................................................... xii
CHAPTER ONE ..........................................................................................................1
1.0 INTRODUCTION ............................................................................................1
1.1 Background to the Problem ...............................................................................1
1.2 Statement of the Problem ..................................................................................5
1.3 Research Objectives ..........................................................................................5
1.3.2 Specific Research Objectives ............................................................................6
1.4 Research Questions ...........................................................................................6
1.4.1 General Research Question ...............................................................................6
1.4.2 Specific Research Questions .............................................................................6
1.5 Significance of the Study ..................................................................................6
1.6 Organizational of the Dissertation .....................................................................7
CHAPTER TWO..........................................................................................................8
2.0 LITERATURE REVIEW ..................................................................................8
2.1 Overview ................................................................................................................8
2.2 Conceptual Definitions ......................................................................................8
2.2.1 Human Resource Management (HRM)..............................................................8
2.2.2 Human Resource Management Practices ...........................................................8
2.2.3 Job Satisfaction ............................................................................................... 10
2.3 Theoretical Literature Review ............................................................................... 10
2.3.1 Fredrick Herzberg’s two Factors’ Theories ........................................................ 10
2.3.2 Adams’s Equity Theory (1965) .......................................................................11
2.4 Empirical Literature Review ........................................................................... 11
2.4.1 Effect of Training and Development on Job Satisfaction .................................11
2.4.2 Effect of Compensation on Job Satisfaction .................................................... 12
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2.4.3 Effect of Performance Appraisal on Job Satisfaction .......................................... 13

2.5 Research Gap ..................................................................................................14
2.6 Conceptual and Theoretical Framework .......................................................... 14
CHAPTER THREE ....................................................................................................16
3.0 RESEARCH METHODOLOGY.....................................................................16
3.1 Overview ........................................................................................................16
3.2 Research Philosophy, approach and design...................................................... 16
3.3 Survey Population ........................................................................................... 17
3.4 Area of the Research ....................................................................................... 17
3.5 Sampling Design and Procedures ....................................................................17
3.6 Variables and Measurement Procedures .......................................................... 18
3.7 Method of Data Collection .............................................................................. 19
3.8 Data Processing and Analysis.......................................................................... 20
CHAPTER FOUR ......................................................................................................21
4.0 FINDINGS AND DISCUSSION .....................................................................21
4.1 Overview ........................................................................................................21
4.2 Description of Sample ..................................................................................... 21
4.3 Demographic Characteristics of The Respondents ........................................... 21
4.4 Reliability Test ................................................................................................ 23
4.5 Research Objective One: Investigation of Perception of Employees on Selected
HRM Practices in MDC.............................................................................................. 24
4.6 Research Objective Two; To Assess the Level of Employees Job Satisfaction in
MDC 24
4.7 Research Objective Three; To Determine the Relationship of Selected HRM and
Employees’ Job Satisfaction at MDC.......................................................................... 24
Source: field work (2017) ........................................................................................... 25
4.8 Discussion.......................................................................................................25
CHAPTER FIVE ........................................................................................................28
5.0 CONCLUSION AND RECOMENDATIONS ................................................. 28
5.1 Overview ........................................................................................................28
5.2 Summary of the Findings ................................................................................ 28
5.3 Conclusion ......................................................................................................29
5.4 Recommendations ........................................................................................... 29
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5.5 Limitations of the Research ............................................................................. 29

5.6 Areas for the Future Research .........................................................................30
REFFERENCES.........................................................................................................31
APENDICES .............................................................................................................. 36
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LIST OF TABLES

Table 3.1 Distribution of Survey Population in MDC ............................................................. 18

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LIST OF FIGURES

Figure 2.1 Conceptual Framework.......................................................................................... 15

 xii

LIST OF ABBREVIATION

ANOVA Analysis of Variance

HR Human Resource

HRM Human Resource Management

MDC Monduli District Council

SPSS Statistical Package for Social Science

USA United State of America

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CHAPTER ONE

1.0 INTRODUCTION

1.1 Background to the Problem

This study was designed to examine the effects of human resource management

practices on employees’ job satisfaction in Monduli District Council at Arusha City.

Job satisfaction refer to the pleasurable emotional state resulting from perception of

one’s’ job as fulfilling or allowing fulfillment of one’s important values provided these

values are compatible with ones needs (Locke 1976). Job satisfaction has been

associated with several work outcomes such as employees’ performance (Ostrof, 1992),

employees’ turnover (Mosadehrad, et al., 2008; Olesegun, 2013), employees’

engagement (Harter, et al., 2002) to mention but a few. These few examples indicate

that employee’s job satisfaction is a key variable which organizational managers should

manage if positive work outcomes are to be recorded in an organization. One step

towards its management is to identify its determinants.

The literature shows that job satisfaction can be predicted by various human resource

management (HRM) practices within an organization. Bratton and Gold (2009) defines

HRM as the strategic approach to managing employment relations which emphasizes

that leveraging people capabilities is critical to achieving competitive advantage. They

also argue that leveraging people’s capabilities is achieved through a distinctive set of

integrated employment policies, programs and practices. HRM “is a strategic and

coherent approach to the management of an organizations most value asset; the people

working there who individually and collectively contribute to the achievement of its

objectives” (Amstrong, 2011, p. 3). Minbaava (2005) views HRM practices as “a set of
 2

practices used by organization to manage human resource through facilitating the

development of competencies that are firm specific, produce complex social relation

and generate organization knowledge to sustain competitive advantage”. Yeganeh and

Su (2008) identify the most common human resource management practices as those

related to recruitment, selection, training and development, compensation, reward and

recognition.

Studies linking job satisfaction and HRM practices have either used the full list of HRM

practices or just a set of some of them. (Balozi, 2011), for example, using a sample of

employees of Tanzania Public Service College, reported that HRM practices – career

development, staffing, training and development, performance appraisal and incentives

– have been positively related to job satisfaction, while training and development

showing the strongest relation to job satisfaction. Ijigu (2015) investigated on the effect

of selected HRM practices on employees job satisfaction in Ethiopian public banks and

reported that recruitment and selection have moderate positive relationship with

employee job satisfaction and training and development, performance appraisal and

compensation package have strong positive relationship with employees job

satisfaction also researcher show that recruitment and selection, training and

development, performance appraisal and compensation package have significant

positive impact on job satisfaction. Niazi (2014) in Pakistan studied impacts of human

resource management practices on job satisfaction and reported that increments and

promotion, growth, performance appraisal, respect for employees and training and

development have significant relationship with job satisfaction. Jeet and Sayeeduzafar

(2014) proposed that human resource management practices namely training,

performance appraisal, team work and compensation have significant impact on job
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satisfaction. Despite the relevance of the studies, the results are not universal as there

are differences in geographical, coverage, methodologies used, time as well as the

nature of organization studied. Public sector organizations in Tanzania also face

challenges related to employees’ job satisfaction.

Monduli District Council (MDC) is one such organizations. MDC is one of the seven

councils in Arusha Region. It was established during colonial rule. On 29/07/2005 the

former president of Tanzania Hon. Benjamini William Mkapa announced the division

of Monduli District into two, namely Monduli and Longido districts. MDC’s

headquarters are located at Monduli town; 45 km from Arusha city. It covers about

6419 square kilometers. MDC provides various services to the community such as

health, education, water, road, land survey, forestry, livestock and agricultural services.

MDC like any other public-sector organizations in Tanzania faces challenges related to

dissatisfaction expressed by employees’ burnout, lower level of retention, higher rate of

turnover, low commitment, poor performance, low morale, more indiscipline acts,

sabotage, absenteeism. Particularly in 2016, eight (8) cases of absenteeism were

reported by line managers while 18 employees quitted the organization in 2015 and

2016 most of whom went to private sectors. These events could be taken as outcomes of

dissatisfaction among employees and they could be attributed to dissatisfaction with

some HRM practices at MDC. Investigation on which HRM practices affect

employee’s job satisfaction is of interest to many stakeholders. The government, for

example, will benefit as owner of these organizations due to the fact that it will take

steps to put in place strategies to ensure that it meets the goals and objectives of the

organizations. Employees, on the other hand, will be informed of areas where they
 4

should focus their negotiation with the employer when it comes to demanding for better

management practices and other rights. In case of organization, this study will help

MDC and other public organizations in Tanzania to build ground for appropriate and

achievable HRM practices to improve employees’ job satisfaction. Jived (2012) said

that “every individual employee wants satisfaction at his or her job but organizations

waste theirs resource by focusing on wrong HR practice for employee job satisfaction”.

The results of this study will help the HR managers to have knowledge and skills to

build achievable, meaningful and implemented HR practices in organization as well as

will show the applications and relevance of various job satisfaction theories in

organizations in Tanzania context.

Theories which support this study were Fredrick Herzberg’s Two factors theory (1966)

who state that working condition, quality of supervision , status, job security, salary,

company policy and administration and interpersonal relationship are dissatisfies while

achievement , recognition, advancement to higher level task, job itself, growth and

development are satisfiers. Equity theory is another theory focuses on the perception of

people about how they are being treated as compared to others. Basically, these theories

link the HRM practice and job satisfaction in organizations they therefore be used to

build independent variables such as training and development, compensation practices

and performance appraisal practices to test the effect of each on employee’s job

satisfaction of employees of MDC. Therefore, this study aimed at examining the effects

of human resource management practices on employees’ job satisfaction in Tanzania

context with particular focus in MDC.

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1.2 Statement of the Problem

The challenge of employees’ job satisfaction continues to be an issue in today’s most

public-sector organization in Tanzania context. Recently, most of government

employees are complaining about unfair salary, unsatisfied benefits, lack of recognition

and appreciation, lack of training opportunities, poor performance appraisal system,

poor recruitment and selection procedures, poor rewarding system and career

advancement in their organizations .The results of these complaints is low commitment,

high turnover rate, absenteeism, low morale, poor performance, in discipline acts and

poor employer-employee relationship in organizations.

The MDC is among the public-sector organizations which face these challenges. In the

year of 2016, 18 employees quit the organization and eight (8) cases were reported

about absenteeism in organization. This implies that there is problem of job

dissatisfaction among employees in MDC that in turn cause the organization to fail to

meets its objectives and goals. There have been suspicions that such employee behavior

could be linked to employee dissatisfaction with various aspects of the work, HRM

practices being one of such aspects. Little is known or available in the public domain

whether research has been done in MDC on the possible link between HRM practices

and employees’ job satisfaction. This research is therefore an attempt to add empirical

evidence to the body of knowledge about the link, by bringing up evidence from MDC.

1.3 Research Objectives

1.3.1 General Objective

To examine the effect of human resource management practices on employees’ job

satisfaction in MDC.
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1.3.2 Specific Research Objectives

(i) To investigate the perceptions of employees on selected HRM practices namely

training and development, compensation and performance appraisal in MDC.

(ii) To assess the level of employees’ job satisfaction in MDC.

(iii) To determine the relationship between the selected HRM practices namely

training and development, compensation, and performance appraisal and

employees’ job satisfaction at MDC.

1.4 Research Questions

1.4.1 General Research Question

The main research question was: What are the effects of human resource management

practices on employee’s job satisfaction in MDC?

1.4.2 Specific Research Questions

To answer the main research question, the following specific research questions were

attempted.

(i) What are the perceptions of employees on selected HRM practices in MDC?

(ii) What is the level of employee’s job satisfaction in MDC?

(iii) Is the level of job satisfaction among employees of MDC related to the selected

HRM practices?

1.5 Significance of the Study

The findings will help policy makers and implementers to designate the strong and

achievable HRM practices, policies and programs to improve employees’ job

satisfaction in MDC and countrywide. Furthermore, recommendations and results that

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given in this study are important for economic development in Tanzania as it can be

used to ensure adequate supply of energetic and satisfied workforce in various

economic sectors such as industries, tourism industries, and mining industries since will

propose tested appropriate HR practices to increase employee’s commitment in

organizations. More importantly, the results of this study will help in allocations of

resources such as fund within the organizations that will motivate the employees since

the study provide the best strategies to improve job satisfaction.

1.6 Organizational of the Dissertation

The rest of this dissertation is organized as follows:- Chapter two covers the literature

review providing, conceptual definitions, theoretical literature review, empirical

literature review, research gap as well as conceptual and theoretical framework. The

third chapter covers research methodology comprises an overview of the chapter,

research philosophy, and survey population, area of the study, sampling design and

procedures, variables and measurement procedures, method of data collection, data

processing and analysis. Chapter four covers the findings and discussion of the results

and chapter five covers conclusion and recommendations.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Overview

The purpose of this chapter is to present the results of literature review on what others

does and explains on the same issue. The chapter comprises an overview, conceptual

definitions, theoretical literature review, empirical literature review, research gap

identified and conceptual and theoretical frame work.

2.2 Conceptual Definitions

2.2.1 Human Resource Management (HRM)

Bratton and Gold (2009) define HRM as the strategic approach to managing

employment relations which emphasis that leveraging peoples’ capabilities is critical to

achieving competitive advantage, this being achieved through a distinctive set of

integrated employment policies, programs and practices. But also, HRM is “a strategic

and coherent approach to the management of an organization’s most valuable asset; the

people working there who individually and collectively contribute to the achievement of

its objective” (Amstrong, 2011 p. 3.). Mondy and Noe (2005) identify the functions of

HRM as staffing, human resource development, compensation and benefits, safety and

health and employee and labor relations.

2.2.2 Human Resource Management Practices

Minbaava (2005) view HRM practices as a set of practices used by organization to

manage human resource through facilitating the development of competencies that are

firm specific produce complex social relation and generate organization knowledge to

sustain competitive advantage. Tiwari and Saxena (2012) state that HRM practices
 9

refer to those organizational activities which are directed at managing the pool of

human resources and ensuring that the resources are employed stewards the fulfillment

of organizational goals. Furthermore, Yeganeh and Su (2008) proposed that most

common human resource management practices are recruitment, selection, training and

development, compensations, reward and recognition. The researcher in this study

focused on training and development, compensation and performance appraisal

practices as they seem to be the most influential factors of job satisfaction.

(a) Training and Development

Armstrong (2009, p. 560) defines training and development as the continuous process

that not only enhances existing capabilities, but also leads to the development of skills,

knowledge and attitude that prepare people for enlarged or higher level responsibility in

the future. Also “training is the formal and systematic modification of behavior through

learning which occur as a result of education, instruction, development and planned

experience” (Armstrong, 2010, p. 543).

(b) Performance Appraisal

According to Armstrong (2009, p. 500), performance appraisal defined as formal

assessment and rating of individual by their manager at, usually, an annual review

meeting. Also, according to Grote (2002) performance appraisal is “the systematic way

of evaluating the standard of workers performance”. Gruman and Saks (2011) define

the performance appraisal as “a process through which employees are evaluated in

accordance to their job performance that smooth the progress of career development”.
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(c) Compensation

Compensation defined by Caruth and Handlogten (2001), as the bucket of financial

rewards- salaries, commission, wages, bonuses, insurance and other sorts of

circumlocutory monetary benefits- provided to employees. Also, Dessler (2007, p. 390)

said that. “Compensation refers to all types of pay or rewards going to employees and

arising from their employment”.

2.2.3 Job Satisfaction

The most useful definition of job satisfaction is that provided by Locke (1976) which

defines job satisfaction as “the pleasurable emotional state resulting from perception of

one’s’ job as fulfilling or allowing fulfillment of one’s important values provided these

values are compatible with one’s needs”. Similarly, in Amstrong (2009, p.264) job

satisfaction refers to the attitude and feelings people have about their work. Positive

and favorable attitudes toward the job indicate job satisfaction, negative and

unfavorable attitudes toward their job indicate job dissatisfaction. Parker (2008) defines

job satisfaction as positive emotional state result from an employee. Gigoroundis and

Siskos (2010, p. 72) assert that job satisfaction is “a pleasurable or positive resulting

from the appraisal ones’ job and job experience.

2.3 Theoretical Literature Review

2.3.1 Fredrick Herzberg’s two Factors’ Theories

Fredrick Herzberg’s two factors theory (1966) explains that employees are effected by

two factors that is hygiene factors which ensure that employees does not become

dissatisfied these are working conditions, quality of supervisor, status, job security,

salary, company policies and administration and interpersonal relationships while

motivational factors which cause employees become satisfied are achievement,

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recognition, advancement to higher level task, responsibility, job itself, growth and

development. Qasim (2012) has also used Herzberg two factors theory to explain the

link between the concepts of human resource management and job satisfaction within

an organization.

2.3.2 Adams’s Equity Theory (1965)

Equity theory is concerned with the perception of people about how they are being

treated as compared to others (Armstrong, 2001, p.163). Equity theory proposed that

employees will be better motivated if they are treated equitably and will be

demotivated if they are treated inequitably. Adam state that there two types of equity

that is distributive equity which deals with feelings that people feel they are rewarded

in accordance with their contribution and in comparison, with others. The other is

procedural equity or procedural justice that is concerned with the perceptions

employees have about the fairness of procedures in such area as performance

appraisal, promotion and discipline are being operated. This theory predicts that if the

HRM practices are perceived to be fair and equitably provided they will lead to job

satisfaction. Conversely, if HRM practices are perceived to be unfairly and inequitably

provided they will leads to job dissatisfaction. The above stated theories are relevant to

this study since they predict a relationship between human resource management

practices and employees job satisfaction in organizations.

2.4 Empirical Literature Review

2.4.1 Effect of Training and Development on Job Satisfaction

Khan et al. (2015) in their study in Pakistan employed explanatory research, using

questionnaire to collect data from a sample of 100 respondents. Data were analyzed by
 12

using correlation and regression statistical tools. Researchers concluded that there was

significant relationship between training and development and job satisfaction.

Chaudhary and Bhaskary (2016) employed exploratory and descriptive research design.

A sample of 125 respondents has been randomly selected. Questionnaires were used to

collect data. Results concluded that training and development contribute to job

satisfaction.

Nagaraju and Archana (2015) studied job satisfaction and training and development

using a sample of 237 respondents and self-administered questionnaire. Data were

analyzed by using descriptive statistics and paired test tools. Results proposed that

training and development effect job satisfaction in organization. Johanzeb, et al. (2013)

studied the effect of training on job satisfaction by using 250 employees. Data were

collected by using questionnaires and analyzed by correlation and regression analysis.

The results suggested that there was strong positive relationship between training and

employees job satisfaction. Costen and Salazar (2011) claimed that employees who

have chance to get training and development opportunity are more satisfied with their

job in organization

2.4.2 Effect of Compensation on Job Satisfaction

Salisu, et al. (2015) in their study of impact of compensation on job satisfaction of

public sector construction workers in Nigeria using sample of 265 respondents selected

by stratified randomly sampling techniques. Data were analyzed by using confirmatory

factor analysis tool. The study revealed that compensations have positive impact on

employees’ job satisfaction. Yaseen (2013) studied the effect of compensation factors

on employee’s satisfaction. Simple random sampling technique was used in this

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research and correlation, ANOVA and regression analysis tools were applied. Results

showed that pay, recognition, promotion and meaningful work had effect on job

satisfaction. Teseema et al. (2013) studied effects of compensation package on job

satisfaction in USA, Vietnam and Malaysia. It was a cross sectional study and used a

self-reported questionnaire survey on a sample of 457 respondents from USA, 391

respondents from Vietnam, and 347 from Malaysia. Data were analyzed with ANOVA,

descriptive statistics and regression analysis. Findings revealed that compensation

packages, namely; pay, recognition and benefits have positive effect on job satisfaction.

Nawab and Bhati (2011) studied the influence of employees’ compensation on job

satisfaction in educational sector using 270 questionnaires and correlation and

regression analysis techniques. The results indicated that there was positive significant

relationship between compensation and job satisfaction.

2.4.3 Effect of Performance Appraisal on Job Satisfaction

Kampkotter (2016) studied the performance appraisal and job satisfaction by using

cross sectional survey strategy, questionnaires, regression analysis and samples size

were 10,500 German employees. Researchers found that there was positive significant

effect of performance appraisal and job satisfaction. Ray (2011) adopted the survey

research strategies and total of 570 questionnaires were used for analysis, correlation

analysis and multiple regression analysis were used in data analysis. The results

revealed that performance appraisal had strong significant positive impact on job

satisfaction. Omar, et al. (2013) surveyed 120 respondents in government hospital in

Malaysia through questionnaire; data were analyzed by using person correlation and

regression. Researchers concluded that performance appraisal have significant

relationship with job satisfaction. Darehzereshki (2013) use questionnaires to collect

 14

data from 133 employees. Data were analyzed by regression analysis. The study

revealed that employees who had been exposed to high quality performance appraisal

systems were feeling more satisfied with their work. Kithuku (2012) adopted a case

study research design to study the effect of performance appraisal on job satisfaction at

Kenya Commercial Bank. Researcher use interviews to collect data and descriptive

statistical analysis to analysis data. Results showed that that there was positive

relationship between performance appraisal and job satisfaction.

2.5 Research Gap

The literature review show that there was significant relationship between training and

development and job satisfaction (Khan, et al., 2015), there was significant relationship

between compensation and job satisfaction (Salisu, et al., 2015) and there was

significant relationship between performance appraisal and job satisfaction

(Kampkotter, 2016). The literature review depicts that there is a gap, in sense that, the

effect of HRM practices on job satisfaction have not yet been empirically investigated

in Tanzania context. Thus, the findings of this study attempted to fill this gap by

examining the effect of HRM practices on job satisfaction in MDC.

2.6 Conceptual and Theoretical Framework

Figure 2.1 indicates the link between training and development and job satisfaction

(Khan, et al., 2015), compensation and job satisfaction (Nawab & Bhatti, 2011) and

performance appraisal and job satisfaction (Absar, et al., 2010). According to Herzberg

two factor theories proposed that job satisfaction depend on two factors namely

hygiene and motivational factors and these hygiene factors cannot satisfy employees

but can minimize dissatisfaction.

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HRM practices

Training and
Development
Employees’ job
satisfaction
Compensation

Performance appraisal

Figure 2.1 Conceptual Framework

Source: Researcher, (2017)

This study employs three selected independent variables as hygiene and motivational

factors and according to equity theory predicts that if these variables are equitably

provided leads to job satisfaction.

2.7 Hypothesis

H1 : There is a relationship between training and development and job satisfaction.

H2 : There is a relationship between compensation practices and job satisfaction.

H3 : There is a relationship between performance appraisal practices and job

satisfaction.
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CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Overview

The purpose of this chapter was to show how data would be obtained in the field and

analyzed for interpretation and conclusion in this study. It comprises an overview,

research philosophy, survey population and area of the research, sampling design and

procedures, variables and measurement procedures, method of data collection, data

processing and analysis.

3.2 Research Philosophy, approach and design

The research philosophy of this study was positivism as the study intended to collect

data about the reality and establish causal relationships between HRM practices and

employees job satisfaction.

The research approach of this study was deductive research approach whereby two

theories of job satisfaction namely two factors theory and equity theory were applied

and three research objectives which investigated the perceptions of employees on

selected HRM practices, assessed the level of employees’ job satisfaction and

determined the relationship between the selected HRM practices and job satisfaction

were developed and tested. Also, quantitative research method adopted. (Bryman &

Bell, 2011, p. 620) asserts that quantitative research methods are grounded on

deductive theory in which the researcher test and measure hypothesis against existing

theory”. The research design of this study was cross-sectional survey research strategy.

The reasons for choosing this strategy included its economic viability since survey
 17

strategy allows using of questionnaires to collect data from large population, and these

with which it is administered.

3.3 Survey Population

The survey population of this study was employees of MDC whereby non -managerial

employees were surveyed and they distributed as follows education 846, health 465,

agriculture and livestock 114, land survey 88, forestry 50, water services 46 and road

services 13 totaling 1622 employees. These were surveyed because they are ones who

are affected by HRM practices in organization. The surveyed population was found all

over Monduli District areas and was identified by using the data obtained from the HR

department.

3.4 Area of the Research

This study covered Monduli District Council which located 45 km from Arusha town in

Arusha, Tanzania. The areas of the research were rural based.

3.5 Sampling Design and Procedures

In this study, each non-managerial employees of Monduli District council were study

units. The minimum sample size was calculated by using the following formula,

N= 50+8(m), whereby N is sample size and m is number of independent variables

Hence, N=50+8(3)

N=50+24

N=74, hence the sample size were not less than 74 employees

Stratified sampling techniques were preferred in this study whereby respondents were

divided into strata according to the departments. Within each strata researcher

employed convenience sampling to select respondents until the required sample size
 18

reached. Convenience sampling “involves choosing the nearest individuals to save as

the respondents and continuing that process until the required sample size required has

been obtained or those who happened to be available and accessible at that time”

(Cohen, et al.,2007, p.113-114). Advantage of this sampling technique is convenient to

researcher and disadvantage is that subjected too much to biasness while according to

Cresswell (2005, p.149), “the researcher cannot say with confidence that the

individuals are representative of the population”. The researcher adopted this sampling

procedure due to number of reasons such as employees in MDC are scattered and it

would be very expensive and time consuming for researcher to survey all employees

found in remote areas of Monduli District. This sampling technique was also adopted in

other studies, for example, Mwakatobe (2015), Ijigu (2015) and Ngimbudzi (2009)

Table 3.1 Distribution of Survey Population in MDC

Department Non-Managerial Employees Sample Selected

Education 846 52
Health 465 29
Agriculture and livestock 114 7
Land survey 88 5
Forestry 50 3
Water services 46 3
Road services 13 1
Total 1622 100

Source: MDC staff data (2016)

3.6 Variables and Measurement Procedures

The variables in the study were independent variables, demographic variables and

dependent variables. Demographic variables were age (18-25, 26-35, 36-45 or above 46

years, gender (male or female), marital status (married, single, divorced and widowed),

educational level (primary education, secondary education certificate/diploma

 19

education, university education), length of services (below 3years,4-6 years,7-9years

and above 10 years) and income per month (below 300,000 Tsh, 300,000-599,999 Tsh,

600,000-999,999 Tsh, and above 1,000,000 Tsh). These helped to understand the

sample of employees in MDC. There were three independent variables namely training

and development with 4 items, performance appraisal with 5 items and compensation

practices with 5 items adopted from Rathnaweera (2010). Response was based on five -

point scale where: 1 = ‘strongly disagree’, 5 = ‘strongly agree’ and dependent variable

was employee’s job satisfaction with 36 items adopted from Spector (1994). Response

was based on six- point scale where: 1 = ‘disagree very much’, 6 = ‘agree very much’.

3.7 Method of Data Collection

This study used primary data. Hence, this study used questionnaire to collect data from

the respondents. The questionnaires were structured questionnaires and closed ended

questionnaires, self- administration strategy adopted that was delivery and collection

technique preferred whereby researcher dropped and picked up later the questionnaires.

The questionnaire contained three parts, whereby part one contained demographic

question such as age, gender, marital status, educational level, length of services,

income per month of the respondents. The second part contained HRM practices -

training and development with 4 items, compensation practices with 5 items and

performance appraisal practices with 5 items adopted from Rathnaweera (2010),

Responses were based on five- point scale where: 1 = ‘strongly disagree’, 5 = ‘strongly

agree’, lastly, was overall job satisfaction with 36 items adopted from Spector (1994).

Response was based on six-point rating scale where: 1 = ‘disagree very much’, 6 =

‘agree very much’. Questionnaire was chosen due to its advantages such as low cost,
 20

free from biasness, large samples can be involved and respondents have adequate time

to give well thought answers to questions given.

3.8 Data Processing and Analysis

Data processing involved examination of the questionnaires collected to detect errors

and omissions. Data were then coded and inputted into SPSS. Manipulation was carried

out to compute the variables of interest from the multi-item scales. Descriptive statistics

analysis used to describe the level of employees’ satisfaction the rate of job

satisfaction, and of the HRM practices.

To judge the level of job satisfaction, the guide in Spector (1994) was used where by

total scores between 36 and 108 implies dissatisfaction, 108 and 144 implies

ambivalent and 144 and 216 implies satisfaction. Researcher transformed the multi-

items scales into one score for each of the three independent variables and one

dependent variable by computing the total scores. Multiple regression was used to

analyze the relationship of selected HRM practices with job satisfaction whereby

independent variables were training and development, compensation practices and

performance appraisal practices while dependent variable was job satisfaction.

Cronbach’s alpha used to test reliability of measurement scales.

 21

CHAPTER FOUR

4.0 FINDINGS AND DISCUSSION

4.1 Overview

The purpose of the chapter is to present and discuss the findings of the study. It

comprises overview, description of the sample, demographic characteristics of the

respondents, reliability test, research objectives and discussions.

4.2 Description of Sample

The description of the sample was based on age, gender, marital status, education level,

length of services and income level per month. Questionnaires totaled 100 distributed,

out of them 82 questionnaires were filled and returned which makes a response rate of

82%.

4.3 Demographic Characteristics of The Respondents

Descriptive statistics of the demographic characteristics of the respondents are

presented in Table 4.1. The majority of respondents were aged between 26-35years

old that account 40 (48.8%), followed by aged between 36 -45 years old that account

18 (22.2%), aged between 18-25 years old that account 15 (18.3%) lastly were those

aged above 46 years old that account 9(11%). Gender - the study revealed that 41(50%)

of the respondents were males and 41 (50%) were females. Marital status - mostly of

respondents were married that account 45 (54.9%) followed by others that account

37(45.1%).
 22

Table 4.1: Demographic Characteristics of the Respondents

Demographic characteristics Frequency Percent

1. Age
18-25 years 14 18.2
26-35 years 40 48.8
36-45 years 18 22.0
Above 46 years 9 11.0
2. Gender
Male 41 50
Female 41 50
3. Marital status
Married 45 54.9
Others 37 45.1
4. Education level
Secondary 3 3.7
Certificate/diploma 40 48.8
University 39 47.7
5. Length of services
< 3 years 25 30.5
4- 6 years 22 26.8
7- 9 years 16 19.5
> 10 years 19 23.2
6. Income level
<Tshs 600,000 44 54.3
>Tshs 600,000 37 45.7

Source: field work (2017)

Education level, majority of the respondents had certificate/diploma that account 40

(48.8%), followed by those had university education that account 39 (47.6%) and 3

(3.7%) of the respondents had secondary education in organization. Length of services

majority of the respondents were serviced the organization below 3 years that account
 23

25 (30.5%), followed by those serviced the organization between 4-6 years that account

22 (26.8%), above 10 years that account 19 (23.2%) and lastly were serviced between

7-9 years that account 16 (19.5%) and income level, majority of the respondents had

income level below Tsh 600,000 per month that account 44 (53.7%) and 37 (45.1%) of

the respondents had income level of above Tsh 600,000/= per month while 1(1.2%)

respondent didn’t answer this item.

4.4 Reliability Test

Cronbach’s alpha used to check internal consistency of the measurement scale.

According to Table 4.2 show that training and development had 0.774 Cronbach’s

alpha coefficient which indicate that the internal consistency of 4 items was good,

compensation had 0.691 which indicate the internal consistency of 5 items was good,

performance appraisal had 0.572 which indicate the internal consistency of 5 items was

low and job satisfaction had 0.747 which indicate the internal consistency of 36 items

was good.

Table 4.2: Reliability Statistics of Variables

Variables Cronbach’s Alpha Number of Items

Training and development 0.774 4
Compensation 0.691 5
Performance appraisal 0.572 5
Job satisfaction 0.747 36

Source: Field work (2017)

 24

4.5 Research Objective One: Investigation of Perception of Employees on

Selected HRM Practices in MDC

According to Table 4.3, study revealed that respondents perceive more with

performance appraisal at average of 16.89 followed by training and development at

average of 11.94 and compensation was lowly perceived at average of 10.99 in the

organization.

Table 4. 3: Descriptive Statistics of the HRM Practices

Variables N Min Max Mean Std. Deviation

Training and development 80 4 19 11.94 3.664
Performance appraisal 81 7 23 16.89 3.475
Compensation 82 5 24 10.99 3.939
Job satisfaction 75 82 176 129.32 18.873

Source: field work (2017)

4.6 Research Objective Two; To Assess the Level of Employees Job

Satisfaction in MDC

According to Table 4.3, study revealed that the value of 129.32 as mean score was

between 108 and 144 that indicate ambivalent (Spector, 1994). This result implies that

the respondents had mixed feelings about job satisfaction.

4.7 Research Objective Three; To Determine the Relationship of Selected

HRM and Employees’ Job Satisfaction at MDC

Standard multiple regression was used to determine the relationship of selected HRM

practices and employee’s job satisfaction. According to Table 4.4, findings revealed an

R-square =0.125 (12.5%), it shows that training and development, performance

appraisal and compensation explains about 12.5 percent of the variation in the
 25

employees’ job satisfaction in the model, F= 3.346, P< 0.005 implies that the model

was significant; that is, the model was able to significantly predict levels of job

satisfaction using the three independent variables. Results also revealed that training

and development was significant predictor of job satisfaction with higher beta value of

0.249, p < 0.05, compensation was insignificant predictor of job satisfaction with beta

value of 0.150, p > 0.05 and performance appraisal was insignificant predictor of job

satisfaction with beta value of 0.075, p > 0.05.

Table 4.4: Regression Results

B SE Beta t p-value
Constant 99.241 11.584 8.567 0.000
TTD 1.281 0.628 0.249 2.040 0.045
TPA 0.408 0.652 0.075 0.625 0.534
TCOM 0.719 0.555 0.150 1.295 0.200
R square 0.125
Adjusted R square 0.088
F 3.346 0.024

Source: field work (2017)

4.8 Discussion

Research objective one, the aim of this objective was to investigate perception of

employees on selected HRM practices. According to Table 4.3, results revealed that

employees at MDC perceive more with performance appraisal at average of 16.89

followed by training and development at average of 11.94 and compensation was lowly

perceived at average of 10.99. Research objective two, the aim of this objective was to

assess the level of employee’s job satisfaction in MDC. According to Table 4.3 mean

value of job satisfaction was 129.32 which was between 108 and 144 that indicate
 26

ambivalent (Spector, 1994). This result suggested that the respondents had mixed

feelings about job satisfaction or moderate level on job satisfaction among employees

at MDC. This result is similar to that of Wisniesk (1990) reported that respondents had

medium satisfaction with their job. Research objective three, the aim of this objective

was to determine the relationship of selected HRM practices on employee’s job

satisfaction at MDC. Findings of this study revealed that training and development was

significantly positively related to job satisfaction, other factors held constant. This

implies that a unit increase in perception about training and development in the Council

led to 1.28-unit change in job satisfaction levels. On the other hand, the relationship

between compensation and performance appraisal on one hand and job satisfaction on

the other was insignificant.

Also, the results of this study revealed that training and development is most significant

predictor of job satisfaction with beta value of 0.249, p=0.045 while compensation and

performance appraisal was insignificant predictor of employees’ job satisfaction with

beta value of 0.150, p=0.200 and 0.075, p= 0.534 respectively. These results suggested

that the training and development had positive effect on employee’s job satisfaction

while performance appraisal and compensation had no effect on employee’s job

satisfaction at MDC. These results are consistency with those of Ijigu (2015) and Khan,

et al. (2010) have reported that training and development has positive effect on job

satisfaction while Mumtaz, et al. (2011) suggested that compensation and performance

appraisal have no effect on teacher’s job satisfaction. Hypothesis one was “there is a

relationship between training and development and job satisfaction” and was not

supported. Findings of the study revealed that training and development had positively

and significant relationship on job satisfaction with beta value of 0.249 and was
 27

significant at p = 0.045. Thus, this hypothesis was accepted. This result is consistency

with those of Ijigu (2015). Hypothesis two was there is a relationship between

compensation practices and job satisfaction. Findings of this study revealed that

compensation had positive and insignificant relationship on job satisfaction with beta

value of 0.150 and was insignificant at p = 0.200. Thus, this hypothesis was rejected.

These results are similar to those of Iqbal, et al. (2013). Hypothesis three was there is a

relationship between performance appraisal practices and job satisfaction. This study

revealed that performance appraisal had positively and insignificant relationship on job

satisfaction with beta value of 0.075 and was insignificant at p = 0. 534. Thus, this

hypothesis was rejected. This result is consistency with those of Garcia (2015).
 28

CHAPTER FIVE

5.0 CONCLUSION AND RECOMENDATIONS

5.1 Overview

The main objective of this study was to examine the effect of HRM practices on

employee’s job satisfaction at MDC. Specifically, the study aimed to investigate

employee’s perceptions on selected HRM practices, to assess the level of employee’s

job satisfaction and to determine the relationship between selected HRM practices and

employees job satisfaction. Questionnaire was divided into three parts, part one was

demographic characteristics of respondents, part two was HRM practices with three

variables namely training and development, compensation and performance appraisal

adopted from Rathnaweera (2010) and part three was job satisfaction survey with 36

items adopted from Spector (1994). This instrument used to collect data from

employees of MDC. Data were analyzed and interpreted using descriptive statistics,

correlation and regression analysis technique.

This chapter comprises an overview, summary of the findings, conclusion,

recommendations, limitations and areas of the future research.

5.2 Summary of the Findings

The findings of this study revealed that respondents perceive more with performance

appraisal, followed by training and development and compensation. Additionally, study

revealed that level of employee’s job satisfaction is ambivalent while training and

development has correlation on job satisfaction and performance appraisal and

compensation has no correlation on employee’s job satisfaction. Furthermore, finding

shows that training and development is significant predictor of employee’s job

 29

satisfaction while compensation and performance appraisal are insignificant predictor

of job satisfaction. Three hypotheses tested and one of them is accepted while two of

them are rejected.

5.3 Conclusion

The results of this study suggested that employees at MDC perceive more with

performance appraisal followed by training and development and compensation while

have mixed feelings about their job satisfaction that implies moderate job satisfaction

level. Furthermore, there is relationship between training and development while there

is no relationship between performance appraisal and compensation and employee’s

job satisfaction at MDC. Also results shows that the training and development has

effect on employee’s job satisfaction while compensation and performance appraisal

have no effect on employee’s job satisfaction at MDC.

5.4 Recommendations

According to the results of this study the government should improve the HRM

practices such training and development by increasing various training programs such

as seminars, workshops, self-directed learning and mentoring programs and allocate

resources to fund these programs and fees for employees.

5.5 Limitations of the Research

This study has several limitations such as study involve small sample size and cover a

very limited area of MDC thus the results cannot be generalized. The results are also

limited to one Local Government Authority out of the over 120 such Authorities in

Tanzania. To enhance generalization within the context of Local Government

 30

Authorities, a study or a wider sample that would be more representative of the

authorities would be of immense value.

5.6 Areas for the Future Research

Further to the suggestion in the preceding section, use more independent variables such

recruitment and selection, employee participation, labor relation and rewarding rather

than using only training and development, compensation and performance appraisal

should be considered. Lastly but not the least, use of data collection methods such as

interviews and group discussion would help in gaining a deeper understanding of how

HRM practices affect employees’ satisfaction with their job in the Councils.
 31

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 36

APENDICES

QUESTIONAIRES

I am RAMADHANI MASHAKA RAMADHANI, currently am a masters’ candidate

in Human resource management at Open University of Tanzania (OUT), in academic

year 2015/2016.

Dissertation is the requirement of award for masters’ degree; hence I am doing a

research of effect of human resource management practices on employee’s job

satisfaction in MDC.

I would be thankful if you could spend some time and involve in this survey in your

organization, this will take you not more than 5 minutes to fill.

Confidentiality is ensured, as everything being mentioned in this survey is just for

academic study and your answers will only be used for the research purposes.
 37

PART 1: GENERAL INFORMATIONS

1. Age: 18-25….… 26-35……… 36-45……… above 46 ……..(please tick one)

2. Gender: Male ………. Female ……….(please tick one)

3. Marital status: married…….. single………..divorced………widowed ( please tick one)

4. Education level: Primary education………Secondary

education………Certificate/Diploma education………University education……...(please

tick one)

5. Length of services: below 3 years………4-6 years…….7-9 years ……….above 10

years…………( please tick one)

6. Income level per month (in Tsh ); below 300,000…….300,000-

599,999.………600,000-999,999……………above 1,000,000………..(please tick one)

 38

PART 2: HRM PRACTICESSCALE

Against each of the statement below please tick (√) the levels of agreement in each of

the items below with regards to the HRM practices of your organization where

1=strongly disagree(SD); 2 = Disagree (D); 3 = Neutral (N); 4 = Agree (A), and 5 =

Strongly Agree (SA)

TRAINING AND DEVELOPMENT 1 2 3 4 5

I have training opportunities to learn and Grow 1 2 3 4 5
I get training I need to do my job well 1 2 3 4 5
Available training match with my job 1 2 3 4 5
I get the training from the organization for my next 1 2 3 4 5
promotion
PERFOMANCE APPRAISAL
The performance appraisal is fair 1 2 3 4 5
There is a formal & written performance Appraisal 1 2 3 4 5
system
I am informed that how my performance is evaluated 1 2 3 4 5
I receive feedback of performance evaluation results 1 2 3 4 5
about myself
Performance appraisal is done by the supervisor 1 2 3 4 5
COMPENSATION 1 2 3 4 5
Available benefits are appropriate for my Needs 1 2 3 4 5
Provide performance based compensation 1 2 3 4 5
My salary is fair for my tasks, duties and responsibilities 1 2 3 4 5
of my job
The organization provide equitable external salary 1 2 3 4 5
Amount of health care paid is sufficient 1 2 3 4 5
 39

PART 3: OVERAL JOB SATISFACTION

Please circle the one number for each statement that comes closest to reflecting your

opinion about it; where 1 = Disagree very much; 2 = Disagree moderately; 3 =Disagree

slightly; 4 = Agree slightly; 5 = Agree moderately; and 6 = Agree very much

I feel I am being paid a fair amount for the work I do. 1 2 3 4 5 6

There is really too little chance for promotion on my job. 1 2 3 4 5 6
My supervisor is quite competent in doing his/her job. 1 2 3 4 5 6
I am not satisfied with the benefits I receive. 1 2 3 4 5 6
When I do a good job, I receive the recognition for it that 1 2 3 4 5 6
I should receive.
Many of our rules and procedures make doing a good job 1 2 3 4 5 6
difficult.
I like the people I work with. 1 2 3 4 5 6
I sometimes feel my job is meaningless. 1 2 3 4 5 6
Communications seem good within this organization. 1 2 3 4 5 6
Raises are too few and far between. 1 2 3 4 5 6
Those who do well on the job stand a fair chance of 1 2 3 4 5 6
being promoted.
My supervisor is unfair to me. 1 2 3 4 5 6
The benefits we receive are as good as most other 1 2 3 4 5 6
organizations offer.
I do not feel that the work I do is appreciated. 1 2 3 4 5 6
My efforts to do a good job are seldom blocked by red 1 2 3 4 5 6
tape.
I find I have to work harder at my job because of the 1 2 3 4 5 6
incompetence of people I work with.
I like doing the things I do at work. 1 2 3 4 5 6
The goals of this organization are not clear to me. 1 2 3 4 5 6
I feel unappreciated by the organization when I think 1 2 3 4 5 6
about what they pay me.
People get ahead as fast here as they do in other places. 1 2 3 4 5 6
 40

My supervisor shows too little interest in the feelings of 1 2 3 4 5 6

subordinates.
The benefit package we have is equitable. 1 2 3 4 5 6
There are few rewards for those who work here. 1 2 3 4 5 6
I have too much to do at work. 1 2 3 4 5 6
I enjoy my coworkers. 1 2 3 4 5 6
I often feel that I do not know what is going on with the 1 2 3 4 5 6
organization.
I feel a sense of pride in doing my job. 1 2 3 4 5 6
I feel satisfied with my chances for salary increases. 1 2 3 4 5 6
There are benefits we do not have which we should have. 1 2 3 4 5 6
I like my supervisor. 1 2 3 4 5 6
I have too much paperwork. 1 2 3 4 5 6
I don't feel my efforts are rewarded the way they should 1 2 3 4 5 6
be.
I am satisfied with my chances for promotion. 1 2 3 4 5 6
There is too much bickering and fighting at work. 1 2 3 4 5 6
My job is enjoyable. 1 2 3 4 5 6
Work assignments are not fully explained. 1 2 3 4 5 6

THANK YOU, FOR YOUR COOPERATION