Despite good salaries and other incentives, the company offers 300,000 Tanzanian
Shillings (Tshs) per month to her employees as meal allowance, 15% of salary as hous-
ing benefit, and for emergencies.
Employees are members of BP provident fund where employees contribute 5% and
BP contributes 7.5% of the monthly salary.
Monetary and non-monetary rewards at Tanga Cement Company Ltd
Tanga Cement Co. Ltd is a private company dealing with cement production and distri-
bution in Tanzania. The company provides the following monetary and material re-
wards:
- Burial Assistance of Tshs 500,000
- Longevity award ranging from two to five tonnes of cement or equivalent. This
award goes to employees who have served the company for a long period starting
from two years and above. - Retirement award of forty tonnes of cement or equivalent
- December allowance of 40,000 Tshs for Christmas and end of year celebrations
- Family party during festivals
The major reason as to why organisations increase rewards in terms of salaries and other
incentives is because it is assumed that money increases job satisfaction, motivates and
hence leads to better performance. However, studies conducted mostly in developed
countries for the past 50 years have tried different aspects of motivation and have not
yet come to any conclusive results regarding the value of money as a reward for all cat-
egories of staff. A study in Tanzania and Uganda also shows that it is not exclusively
money that matters when encouraging employees to put more effort into their jobs.
Salary as reward at Tanzania Tobacco Processors Ltd
Tanzania Tobacco Processors Ltd (TTPL) is a private company wholly owned by Uni-
versal Leaf Tobacco of the USA. Although the company is one of the leading and high-
est rewarding companies in the country, when asked about the value of different aspects
of reward in a job, it was surprising to note that salary was not considered to be as sig-
nificant as one would have expected as shown in Table 7.3. A quick glance at the table
shows that respect to the employee, recognition for the work done, well designed job
and distribution of responsibilities are the leading causes of employees’ satisfaction and
source of motivation. Therefore, employees seem to get reward from the job itself (in-
trinsic), which is common in the mainstream literature on motivational theories (BPP
Table 7.3 Determinants of employees’ motivation
Factor % of employees motivated
Respect 95
Recognition 95
Allowances 24
Working facilities 19
Transparency 19
Salary and overtime 10
Job design and distribution of responsibility 75