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FACTORS THAT INHIBIT EFFECTIVE UTILISATION OF PERFORMANCEAPPRAISAL:

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 CaseStudy of Selected NGOs Based in Dar es Salaam. This was an attempt to find out the performanceappraisal practice in LNGOs, and challenges that they are facing in administering formal performanceappraisal 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 overviewof 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 areoutdated and highly discouraged by most human resources professionals, LNGOs staff and otherstakeholders. The researcher noted that formal and open PA practices are the most appropriate andmostly desired by LNGOs staff.

The researcher recommended that LNGOs, the donor community and the government have an importantrole to play to collectively promote effective utilization of performance appraisal in LNGOs. This is possibleby making PA programme a mandatory undertaking to be reported on a yearly basis the same as financialand 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 andpolicy response. More specifically, the study intended to examine the effect of donor funds inflows onmoney supply and inflation, and determining the degree of significance of the donor funds inflows on thereserve money. The effect of donor funds inflows on real gross product was also investigated. Correlationcoefficients and regression results were used during the discussion in this study. While the relationshipbetween donor funds inflows and money supply was strongly proved to be positive and significant at onepercent 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 donorfunds inflows and inflation was strongly rejected. Hence an increase in donor funds inflows in Tanzania didnot cause an increase in the rate of inflation.

The relationship between RGDP and donor funds inflows was strongly proved to be positive andsignificant at one percent level. Therefore the hypothesis that donor funds inflows have a positive effect onTanzania economy was not rejected at all. The study suggests that if the economy is faced with large donorfunds inflows and the cost of sterilization seems to outweigh the banks income, and then policy responsehas 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 ASPERCEIVED 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 servicequality 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 theeffects 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 findingsemerged. First, interdepartmental conflict and interdepartmental connectedness appear to influence thelevel of service quality.

Second, the results appear to suggest that interdepartmental conflict and interdepartmental connectednesscan be improved by a host of actions, including a management style that exhibits less risk aversion, greaterempowerment of employees and the development of a market-based reward structure to create commonincentives.

Generally, in order to improve service quality, organizations must work to reduce conflict and increaseconnectedness among departmental groupings. Specific managerial implications and direction for furtherresearch have been discussed.

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THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON ORGANIZATIONPERFORMANCE

The Case of Vodacom Limited, Tanzania Breweries Limited and Barrick Gold MiningCompany

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 wereallowed to engage fully in business activities. That resulted into increased competition among different firmsproducing and selling products with similar use such a pattern forced firms to design different marketingstrategies aimed at penetrating different market segments, and increase their production, sales as well asprofits.

This study investigated the impact of firms corporate social responsibilities on organization performancein Tanzania in the post 1990 period. A sample of three firms, namely, Vodacom Tanzania Limited, TanzaniaBreweries Limited and Barrick Gold Mining Company Ltd were used as representatives. Overall findingsrevealed that increasing firms corporate social responsibilities and others have helped to advertise as wellas market products. Hence, have increased sales and profits amidst stiff competitions, though their socialresponsibilities have been limited mainly to urban areas.

It is recommended that measures be undertaken by all stakeholders in order to enable more people inremote rural areas also to benefit from their activities. The Government should increase tax incentives onproducts offered by these companies as part of their packages of corporate social responsibilities. Measuresshould be undertaken to increase employment and disposable incomes for households in order to increasehouseholds purchasing power. Lastly, there should be formation of one independent NGO body, whichwill 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


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.


The study revealed that it is right time to exercise derivatives in Tanzania and common derivatives used inTanzania 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 alsorevealed that the regulatory body hasnt 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 corporatecompanies are not taking active part in the modern financial products like these. If banks utilize derivativesfully, then, it would help even to stabilize our Tanzanian Shillings against major currencies. It is alsorecommended that proper skills are required and the Central Bank should play the active role to engineerthe whole exercise of derivative market development in Tanzania

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MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) ACCESS TOCOMMERCIAL 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) accessesto financial services in Tanzania, with special focus on Commercial Banks (CB). The study was conductedfor 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 madeavailable to MSMEs in Tanzania. Secondary, Establish the cost/price at which commercial banks financeis 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 theimpact of limited access to these credits on MSMEs performance and lastly to put forwardrecommendations for adoption by both parties in the study.

It was found that, about 70% of the banks users are aware of the availability of commercial banksloans but the problem is education and awareness by MSMEs owners. This implies that, small businessowners should make extra steps in learning what are the necessary requirements and the cost involved. Onthe other hand, the government should improve the current policies to incorporate the newly ones focusingspecifically on access to Commercial Banks funds that is deregulation. Also assist on introducing moreschemes and training centers for the development of the sector and economic improvement.

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FACTORS AFFECTING PERFORMANCE OF SMALL LOCAL ENGINEERINGCONSULTING FIRMS IN TANZANIA

Phillip MakotaMaster of Business Administration (Marketing), November 2006

The research sought to establish factors affecting performance of small local engineering consulting firms inTanzania. In so doing, engineers were asked whether they find guidelines for evaluation of technical proposalsaffects small firms during tendering for various projects in the country, whether small firms have equalchances to meet threshold (benchmarks) as is the case to large local or foreign firms. The research alsolooked at among other things whether firms association may assist small firms in future projects, establishingwhether engineers perceive there is a need to classify engineering consulting firms. Lastly, the researchought to establish what engineers perceive as main obstacles to the development of engineering consultingfirms in Tanzania.

The research was able to establish that engineers perceive that qualifications and experience as well asquality of proposed staff are among major obstacles to small firms when their technical proposals areevaluated. Engineers find that small local firms have narrow chances to meet threshold when competing forvarious projects. That being the case, they do agree that there is a need to classify engineering consultingfirms. Engineers do agree that when small firms associate with large local or foreign firms their capacityincreases due to knowledge transfer from large to small firms. Generally, the research was able to achievethe intended goal; henceforth it is highly emphasised that individual registered engineers, IET, ERB, ACETand others to join hands in developing solutions to address problems mentioned in this research.

***************CONTRIBUTION OF MICRO CREDIT TO POVERTY REDUCTION IN THE RURAL

SOCIETY OF TANZANIA The Case of Mbinga Community Bank

Sayuni MbwiloMaster of Business Administration (Finance), October 2007

Establishment of microfinance institutions for the purpose of mobilizing savings and disbursing micro creditto the poor in developing countries has been among the strategies to alleviate poverty. This study is intendedto find out whether community banks in Tanzania contribute to the growth of income, improving wellbeingand reducing capability poverty of the small scale farmers.In collecting the primary data, questionnaire was administered to 94 randomly selected households of fivevillages of Mbinga district namely; Mkwaya, Kindimba, Mbangamao, Tukuzi and Ngima. Data analysiswas done by SPSS software. Cross tabulation, one way and multiple comparisons ANOVA tests werealso done.

The empirical evidence of the study indicates that micro credit changed the life of the poor in a positiveway. Clients who borrowed at least once from MCB have relatively higher income, investment in productive


assets, accessibility to education and food sufficiency. Frequency of borrowing have been found to influencethe impact of the loan to poverty reduction because those clients who borrowed more frequently werefound to be more well off than the new and the prospective borrowers.

***************FACTORS INFLUENCING CUSTOMER SATISFACTION WITH INSURANCE

COMPANIES A Case of Tanzania

Lucas MimbiMaster of Business Administration (Marketing), October 2007

The objective of the study was to investigate the factors influencing customer satisfaction with insurancecompanies. Professional services are credence products with very few tangible cues to signal quality. Indeveloping a tool for the insurance context, the 21 attributes of service quality were operationalised generatingfive 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 provideddata 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 customersatisfaction with insurance companies, suggesting that these two dimensions were regarded by policyholdersas the most crucial towards meeting customer satisfaction. Managers should look into the two dimensionsvery closely as they are important to customers. Improvement of service quality should be in this orderReliability, Assurance, Responsiveness, Empathy, Tangibles.

Growing evidence that customer satisfaction drives organizations economic health means that managerscan no longer afford to ignore customers feedback. Rather, organization-specific examination of dimensionsis vital and useful so that managers are able to assess and determine the precise level of both customersatisfaction and its influencing factors. The proposed exploratory instrument used here to measure customersatisfaction with the insurance industry could serve as a starting point for other studies in the professionalservices domain.

***************THE EFFECTIVENESS OF AGENCY FORCE IN FINANCIAL INSTITUTIONS

The Case of National Insurance Corporation of (T) Limited (NIC)Vivian Jonathan Mmari


This study investigated the effectiveness of agency force in financial institutions with specific reference tothe National Insurance Corporation of Tanzania Limited (NIC). Over the years the NIC has been using

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substantial amount of money and other resources on its agency force. Until now no research has beendone to ascertain the effectiveness of the agency force. To achieve the objectives and questions raised inthe research the study gathered a variety of data in the above mentioned aspects of agency forceeffectiveness. 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 establishconcepts and theories pertaining to the study. The findings show that the agency force contribution to NICoverall performance is not effective especially under the liberalized market. Following the Insurance Act of1996, now there are 16 private insurance companies conducting insurance business in Tanzania. Factorsthat contributed to that situation are related to; NIC weakness, agency force and the existing regulatorymechanism. Thus the corporation is recommended to change its current organization structure, officelayout, and system of recruiting and controlling agents, computerize business operations and adequatelysupport its agents and more to finalize the privatization process.

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DETERMINANT FACTORS OF LOW COVERAGE OF SOCIAL SECURITY SCHEMESIN TANZANIA

Assumpta Maina


Socio-economic risks and uncertainties in human life result in the need for social security. Social securityschemes are the most common formal security schemes. In Tanzania, there are six major social securityinstitutions; five are in Tanzania mainland and one in Zanzibar. Those operating in Tanzania mainland are theParastatal 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 socialsecurity framework; the level of coverage is still very low, hence the general objective of this research wasto 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 20from institutions. Secondary data was obtained from various libraries including PPF data base. Data wasanalyzed focusing on the above mentioned objective while trying to answer the accompanying specificquestions.

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 securityschemes due to paucity of their incomes; Lack of knowledge of the types of benefits offered by socialsecurity schemes; Members delays in receiving benefits when due and failure by security benefits to meetmembers immediate priority needs.

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FACTORS HINDERING THE EFFECTIVENESS OF STAFF TRAINING The Case of Tanzania Postal Bank (TPB)

Gabriel MwajombeMaster of Business Administration, November 2007

This study was conducted to investigate the factors hindering the effectiveness of staff training. The studybased on the case study approach that focused on the Tanzania Postal Bank. A Stratified technique wasused to select respondents from both management and non-management levels. 51 respondents weresampled and administered with questionnaires. Personal interviews were conducted with the human resourcesofficer. Data were analyzed using SPSS and were presented in tabular form, relative frequencies, chartsand figures.

The factors behind the ineffective staff training were; lack of autonomous training unit that coordinatestraining in the bank, insufficient budget allocated for training function, poor involvement of employeesparticularly in the TNA process, the criteria for trainees selection are not clearly known, and are not givena chance to determine what kind of training they actually need, the training center is poorly financed andmanaged together with the poor methods used for training( classroom based), lack of competent humanresources 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 promotingtransparency in the whole process of training. The bank should accrue more funds for staff training, train allmanagers and supervisors through the TNA process. Further the bank should form an autonomous unitdealing with staff training and development function.

***************FACTORS INFLUENCING SMALL AND MEDIUM ENTERPRISES DEVELOPMENT IN

TANZANIAAn Exploratory Study of Entrepreneur and Enterprise Characteristics

Sarah Isaac NgomuoMaster of Business Administration (Finance), November 2007

This study sought to explore the influence of characteristics of both the entrepreneur and the enterprise onfirm performance in Tanzania. Variables covered in the study are age of the entrepreneur, education level,ethnicity, cultural heritage, previous experience, gender, five motivation variables, firms age, firms industrialsector, firms legal status and number of employees. The study combined quantitative and qualitative methodsof enquiry, comprising questionnaires, interviews and observations. Descriptive analysis was used to identifythe characteristics of the study population .The chi-square test was used to identify the significant associationof 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

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independent, finance and self-fulfillment. The following entrepreneur characteristics, such as familybackground in business, gender and two motivational variables (job satisfaction and contribution to economicdevelopment) did not show any influence on firm performance. Enterprise characteristics observed toinfluence firm performance include age, legal status and size. However, firms industrial sector was notobserved 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 andtraining 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.

***************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 SACCOSwhere 100 customers from both PRIDE and Posta na Simu SACCOS were interviewed. At the same time10 respondents credit providers were interviewed. To tackle the research objective the study employedfour research propositions: poor people access credit easily from microcredit institutions; conditions andprocedures set favours poor people; mmicro-credit finance contributed to an increase in income to creditreceivers and micro-credit finance contributed to an increase in employment opportunities

Findings show that Microfinance Institutions lack policy and regulatory environment, have insufficientaccess to information and weak human and institutional capacity. Therefore, as a result of these impedimentsaccess to microcredit remains limited to poor population in Tanzania. It was observed that conditions andprocedures set do not favour the poor and low-income earner clients. Therefore, the proposition that poorpeople do access credit easily was not supported by the results from this study. The results from the studyindicate that both income and employment opportunities increased significantly after started borrowingfrom microfinance institutions. Therefore, the results from this study indicate that micro credit institutionshave created more employment opportunities.

It was recommended that Tanzania needs to intensify its efforts in encouraging entrepreneurship formulationthrough credit strategy. In order to improve credit growth through Microfinance Institutions, Tanzaniashould initiate market opportunities for product/services through promoting business activities, moreoverefforts are needed to simplify the procedures to start and run business through credit facilities. Creation ofawareness is another area needs to be put into consideration, because most people are not aware of theavailability of credit facilities.

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PERFORMANCE IN TANZANIA A Study of Selected Enterprises

Salhina Mussa MkumbaMaster of Business Administration (Finance), November 2007

This study assesses the effectiveness of privatization on enterprise performance in Tanzania by consideringthe effect of private ownership on enterprise sales revenue, Profit Before Interest and Taxes (PBIT), andproduction volume, which are variables used in this study. The study has been carried out as a result ofcontradicting view points of various people on the subject of privatization in Tanzania. Some people are ofthe opinion that privatization has been successful in improving performance of enterprises while othersmaintain that there is no neutral evidence to the effect.

The study uses a sample of 16 privatized enterprises. It was conducted by reviewing information onperformance of firms before they were privatized. This information was mostly retrieved from the PSRCarchives. The pre privatization information is processed to come up with an average for each variablewhich is compared with the average processed from the post privatization data. Post privatization informationwas obtained by circulation of questionnaires to the privatized enterprises and review of secondarydocuments. The averages for both pre and post privatization periods were subjected to the sign test andhypotheses are tested.

***************FACTORS INFLUENCING PURCHASING COST IN PROCUREMENT SYSTEM

The Case of Public Institutions in TanzaniaJackson Anyisile Mwampanga Mwaigonela

Master of Business Administration (Finance), November 2007Most of public procurement system is characterized by frequently emergency orders, poor documentationof records, poor purchasing procedures, lack of consolidated purchase and lack of effective communicationbetween the management and procurement sections in government institutions. The main objective of thisstudy was to determine factors influencing purchasing in procurement system. The cross sectional studysurvey was conducted in Dar es Salaam region and involved different procurement officers from governmentinstitutions. Primary and secondary data were obtained through structured questionnaires and differentpublications. The study was designed to use multiple regression model to establish the relationship amongthe variables, whereby there are more than two independent variables. Independent variables were obtainedby using simple model developed by researcher. The purpose of developing this model was to obtain theweighted average of independent variables since each independent variable has its own weight and havedifferent 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 effectivecommunication and purchasing cost. Similarly the study found direct relationship between costs associated

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with poor documentation and purchasing cost. Costs associated with lack of consolidated purchase havealso direct relationship with purchasing cost. Furthermore, purchasing costs is also directly related to costsassociated with emergency or rush orders. Lastly, costs associated with poor purchasing procedures havedirect relationship with purchasing cost. Based on the findings, the study recommends that the governmentshould continue with the efforts to enforce procurement laws and train all government staffs to avoidinterference among government staffs. The governments should also implement and train procurementstaffs on procurement planning in order to reduce rush orders and frequency purchase. There is a needalso for the government to enforce proper communication between user departments and procurementdepartment in government institutions.

***************FACTORS AFFECTING BANK CREDIT MANAGEMENT

The Case of NBC LimitedMicah Elifuraha Mrindoko

Masters of Business Administration (Finance), November 2007This study aimed at reviewing the general credit management systems in financial institutions to find outthose factors that have significant influence on credit management effectiveness among the financial institutionsin the country so that credit risk can be mitigated.

In order to achieve the intended objective, three research questions and two hypotheses were raisedand tested to guide the study. In this study primary data was collected from NBC Ltd members of staffthrough a semi structured questionnaire using a number of attitude scales.

It can also be concluded from the findings made that character, collateral and circumstance are effectivetools in assessing customers creditworthiness. This implies that, good character, supported with collateraland favorable circumstance are the haven for adherence to credit obligations by borrowers.

Collateral and character differ significantly in terms of their effectiveness in credit risk mitigation. This isbecause collateral is something measurable and its stability in value can be ascertained while character issomething invisible and strongly out of control of the lender.

This study recommends to all the stakeholders in lending business to consider all the six tools in thecourse of assessing customers creditworthiness, the six Cs of Credit.

******************EFFECTIVENESS OF ADMINISTRATIVE REFORMS ON TAX ADMINISTRATION

PERFORMANCE IN TANZANIAKapaya S. Kisesa


This research aims at exploring the Impact of Administrative Reform initiatives at improving TaxAdministration effectiveness in Tanzania through tax modernization projects.


To realize this objective, perceptions of the Authority employees on their level of commitment, skillsand competence, strategies as well as availability of the necessary infrastructures, resources and conduciveoperating environment were used in making the general assessment of success and sustainability ofimplementation of tax administration reforms in the country.

A perception survey was conducted at TRA officers in Dar es Salaam and Coast Regional using semistructured questionnaires and a few interviews with the Authority senior officials. The study made analysisof the data using the Statistical Package for Social Sciences (SPSS) guided by simple hypothesis testsusing Chi-Square model. The study findings indicated that administrative reforms did indeed enhanced taxadministration efficiency and effectiveness.

Nevertheless, the study identified the need to explore the full potential of Information and CommunicationTechnology and Staff Training and Development projects. Other impeding factors identified were theavailability of resources at the implementation level and poor organizational responsiveness to emergingchallenges and/ or opportunities during implementation.

Several recommendations were proposed based on the research findings and other acceptable literatureson how to optimize achieved successes. Further researches were also recommended on issues whoseeffects and outcome could not be ascertained by this study.

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ANALYSIS OF FACTORS INFLUENCING HOTEL OCCUPANCY IN DAR ES SALAAMTenford W. L. Phiri

Master of Business Administration (Marketing), November 2007Hotels are part of the Tourism Industry, which also includes the travel and transportation sectors. Thehotel industry comprises hotels, motels, lodges, restaurants, cottages and guest houses. These togetherare members of the hospitality industry which is part of the service industry.

Following the liberalization of the economy in the 1990s, the country has seen growth in the hotelindustry. This growth in this sector brought about stiff competition. Hence hotels started experiencinghotel occupancy problems.

The main objective of this research was to investigate factors that influence hotel occupancy in Dar esSalaam. The research methodology employed in this study was descriptive study. The study involved bothqualitative and quantitative approach, and it was based on a cross sectional study, where a survey wasconducted and customers in selected hotels were asked to provide information in order to generate answersto the research study. Three hypotheses were tested. The results revealed that services quality, price andlocation had significant influence on hotel occupancy.

It was recommended that in order for all hotels to achieve good occupancies, should provide goodquality services, improve on their marketing strategies and be more aggressive and finally should ensurethat all hotel staff are well trained.

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THE USE OF ACCOUNTING INFORMATION IN DECISION MAKING OF SMALL ANDMEDIUM ENTERPRISES (SMEs)

The Case of Dar es Salaam Region

Anale John

Masters of Business Administration (Finance), November 2007

The focus of this study was to explore and examine the use of accounting information in decision making ofSmall and Medium Enterprises (SMEs), the Case of Dar es Salaam Region in Tanzania.

The objectives of the study were to find out and to identify the different kinds of accounting records andthe extent to which these records were used in generating accounting information, finding out whetheraccounting information were used in the various decisions made by SMEs. Additionally, the study exploredthe extent to which SMEs used accountants as a source of expert advice.

The study used a number of data collection methods including surveys, questionnaires, observation anddocumentary analysis. The study showed that although numerous SMEs did keep some form of financialrecords/accounts. Unfortunately, a huge majority the (SMEs) hardly were aware nor convinced of theusefulness of accounting Information. Moreover, the financial reporting requirements for control and decision-making purposes were but a vocabulary to many.

The study recommends that the SMEs be educated on the importance of accounting information indecision-making. It is only after knowing the importance and role of accounting information that the SMEswill keep the proper records and use the accounting information for vital decisions.

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THE EFFECTIVENESS OF OUTSOURCING TAX COLLECTION IN TANZANIA

Hawa Wahab Ridhuan Mringo

Master of Business Administration (Finance), 2007

The study analyzed the effectiveness of outsourcing in Tanzania, using a case of Tanzania Revenue Authority(TRA). The objectives of the study were to assess the level of revenue collection prior and after outsourcing,level of risk reduction and level of customer satisfaction after outsourcing in TRA.

This study employed a descriptive research design. It was mainly based on primary data that wascollected through semi-structured questionnaire and supplemented by secondary data from review ofliterature on revenue collections in Tanzania.

The findings show that level of revenue collection has improved tremendously; the risks prior faced byTRA were reduced to a greater extent and the level of customer satisfaction improved to a great extentcompared to pre-outsourcing period.


Bases on the research findings and discussions, we have seen that the risks prior faced by TRA werecompletely eliminated, revenue collection increased and the level of customer satisfaction increased aswell.

This study was done using data from Dar es Salaam only. Further study could be done on the sametopic and sample survey to be conducted in the whole country to generalize what was found from the smallsample.

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EFFECTS OF AUTOMATION OF BANKS PROCESSES ON CUSTOMER SERVICEDELIVERY IN COMMERCIAL BANKS

A Case Study of Citibank Tanzania Limited

William Fidelis Makoresho

Master of Business Administration (Finance), 2006

The adoption of technology into service industries is becoming a strong trend as service providers are nowbeing urged by industry bodies to invest in technology as a way of securing their future in the technologyage. Due to lack of computerized customer services banks have found difficulties in providing efficient andbetter services. They have been facing problems of long delays of services to their customers. CitibankTanzania Ltd, which was used as a case in this research, has been investing large amounts of money inautomating its processes. The research intended to explore whether investment in Information Technologydone by Citibank Tanzania is operationally justified and whether it has an impact on customer servicedelivery.

Three study hypotheses were developed. Hypothesis One tested Information system usage and customersatisfaction, Hypothesis Two tested whether the growth of electronic banking has direct relation to theimprovement of banks service delivery, and Hypothesis Three tested whether banks process automationdirectly impact service turn-around time. Cronbachs alpha test was used to test the reliability of thequestions.

It was found that majority of respondents (over 87%) agreed that automated banking services assistfast delivery of banking services and enables settlement of transactions in less than 15 minutes. From thehypotheses testing it was found that automation of banking services had direct relationship to the improvementof banking services, direct impact on service turn-around time and direct proportional to customersatisfaction.

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CONSUMERS PERCEPTION OF ADVERTISING IN TANZANIABernard Venant Ndunguru Kapesi

Master of Business Administration (Marketing), November 2007This study sets out to understand consumers perception of advertising in Tanzania with the view tounderstanding the perceived role of advertising in guiding purchasing decisions, exploring the role advertisingplays, whether or not the ads are entertaining and interesting enough to generate positive ad recall rates, toestablish how informative and persuasive the different types of advertisements are to Tanzanian consumersand finally to establish if there are issues regarding ethical conducts in advertising and how to address them.This study therefore examines the underlying beliefs that may account for perception of advertising amongthe Tanzanian consumers as a result of the countrys trade liberalisation policy adopted in the late 80s.

Qualitative research approach involving the use of Focus Group Discussions (FGDs) was adopted incollecting data for this study. The FGDs were made up of both males and females drawn from the C1C2Dsocio-income groups, aged 18 - 45 years. Digital recording devices were used to record the discussions.

Although research findings show that there is a positive perception of and favourable attitudes towardsadvertising in general, it does not necessarily mean that advertising alone influences purchase decisions.Discussants noted that advertising is useful in product knowledge and availability, and pointed out a fewads considered unethical and/or intrusive in the values and lifestyles of consumers. Entertaining and humourousads were said to have high recall rates. They also expressed the need for having rules and regulations foradvertising to guide both the media and advertisers on ethics.

Based on the focus group respondents the findings indicate that there are economic, social, ethical andregulatory factors of advertising to be considered when examining attitudes towards advertising in general.

Implications of the findings have been highlighted under the respective areas such as implications totheory, to advertising practice/profession, policy implications and managerial implications.

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THE USEFULNESS OF ACCOUNTING INFORMATION FOR DECISION MAKING INTANZANIA PUBLIC UNIVERSITIES

The Case of University of Dar Es SalaamExaut Julius

Master of Business Administration (Finance), November 2006This research aimed at assessing the usefulness of accounting information for decision making in TanzanianPublic Universities. This study analysed how far users competence, information quality and nature ofaccounting information provided contributed to improvement of the usefulness of accounting informationfor decision making in Tanzania Public Universities, taking the University of Dar es Salaam as the casestudy.


In examining the usefulness of accounting information the study was conducted to answer the researchquestions like, do users of accounting information have the relevant experience and qualification? Does theaccounting information contain the relevant quality? and does the nature of accounting information influencethe usefulness of it.

In order to answer the above questions data were collected from 79 respondents, out of whom 51were Accountants, 19 Deans and Directors, 5 internal auditors, the Bursar for MUCHS and Mlimani, aswell as the Chief Administrative Officer and Chief Academic Officer of the University of Dar es Salaam.Data were analyzed using SPSS computer software program.

The research found that there were a significant relationship with respect to competence and quality ofaccounting information in decision making. However with regard to the nature of accounting, the researchfound that there was no relationship with respect to usefulness.

The conclusion reached here is that accounting information is useful in decision making with respect tousers competence and quality of accounting information provided. This study was carried out at theuniversity level and thus appeals for more studies in other sectors of the economy for further assurance.

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FACTORS DETERMINING DEPOSIT MOBILIZATION IN COMMERCIAL BANKS INTANZANIA

Alpha Wilson Magubila


The overall objective of this study was to analyze factors determining deposits mobilization in commercialbanks in Tanzania. More specifically the study intended to: examine the impact of information technologyin deposits mobilization; evaluate the contribution of location of the bank on deposit mobilization; examinethe impact of varieties of services offered on deposit mobilization; and assess the relationship betweenbanks image and deposit growth.

The study employed a sample survey technique, where 60 customers and 60 bank officials from fourbanks (CRDB bank, Akiba Commercial bank, Stanbic bank and Standard chartered bank) were interviewedas representatives in this study. Both primary and secondary information were used in this study. Primarydata through questionnaires was analyzed using Statistical Package for Social Scientists (SPSS). Theresults were presented using frequencies and charts to supplement and support explanations.

The results from the analysis of both the primary and secondary data made the study to come up withthe conclusion that all the factors are influential in Deposit Mobilization in Commercial Banks in Tanzania.Also limitations and area for further research were identified.From the study, recommendations are made on improving the use of information technology in commercialbank to allow more utilization of Electronic money and credit cards. Also it recommends Commercialbanks to design a way to make deprived rural population to get the banking services.

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FACTORS INHIBITING TRAINING AND DEVELOPMENT OF NON-ACADEMICEMPLOYEES OF THE UNIVERSITY OF DAR ES SALAAM

The Case of Directorate of Investment and Resources MobilizationAmos Langaeli Nnko

Master of Business Administration (Human Resources Management), October 2007In this study the researcher wanted to examine factors inhibiting training and development of non-academicstaff of the University of Dar es Salaam and in particular the Directorate of Investment and ResourceMobilization (DIRM).

In order to probe the research problem, the study worked out a population sample drawn from employeesworking with six units of the DIRM. These units are University Student Accommodation Bureau (USAB),Research flat accommodation facilities, Silver Sand Hotel, Transportation Unit, Photographic Unit andInsurance Agency. The total of 60 employees was sampled out of a population of 100 employees.

The study was based on the case study; both qualitative and quantitative research approaches wereused. Simple random sampling method was used to select respondents from the population. The Instrumentsused for data collections were questionnaires, interviews, observations and documentary review. Thedata analysis was done through SPSS and the qualitative data were tabulated and frequented, the respectivepercentages were calculated and where necessary, tables, graphs, and narrative modes were used torepresents results obtained from the data analysis. Finally the data were interpreted.

The findings have indicated that training and development of non-academic staff is affected by variousfactors. Such factors were unavailability of training and development policy and programs for non academicstaff, Inadequate training budget, lack of management support, untrainable employees, poor recruitmentsystem, the use of poor training method, poor employees participation in training and development,incompetent trainers, lack of coherent staff performance appraisal system, poorly conducted TNA, Lackof job re categorization after training, improper planning on employee training, lack of competent andprofessional HRM practitioners and lack of transparency in selection of trainees. In view of these factorsthe study recommended the need to have training policies, accrue funds for employees training anddevelopment. Also TNA should be done effectively and professionally in order to accurately establish thequality of the workforce required by the organization.

***************PUBLIC SERVICE DELIVERY AND FINANCIAL PERFORMANCE OF GOVERNMENT

EXECUTIVE AGENCIES IN TANZANIA The Case Study of the Agencies in Aviation Sector

Paul Christian RwegashaMaster of Business Administration (Finance), November 2006

This study has chosen three Executive Agencies in aviation sector namely TAA, TCAA and TMA as thecase study. The broad objective of this study was to investigate how effective the established ExecutiveAgencies in Tanzania implements and achieve the objectives of their establishments. More specifically, the


study was intended to assess and establish whether the established executive agencies have managed tomake improvements on financial performance and in delivering public service, and to come up with theconclusion on whether the decision of government to create executive agencies was viable decision or not.Quantitative and Qualitative research approaches were used to collect data. The study found that, thesignificant progress has been made in the reviewed agencies compared with the period before theirestablishment. In terms of improvement in public service delivery, TCAA has made a tremendousimprovement followed by TAA which has scored average performance and TMA which has scored low inthis aspect. In terms of financial performance TCAA and TAA have managed to generate own revenues tofinance fully the expenditure budget and they are no longer dependent on government subsides. TMA dueto the nature of services it offers has not managed to generate sufficient revenues to finance its expenditurebudget, and therefore still depends heavily on government subsides. Generally the decision of establishingexecutive agencies as one of the public service reform strategy introduced by the government of UnitedRepublic of Tanzania is viable decision as most of the created agencies have shown positive trends inimproving public service delivery as well as in financial sustainability. However, agencies need to be proactivein seeking ways to scale up their role in service delivery to public. They should have in place a program ofcontinuous service quality improvement based on comprehensive and up to date information on customerneeds and preferences together with the customers perception of the quality of service that is being deliveredand to what extend this meets their expectations.

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COUNTRY OF ORIGIN EFFECTS ON PRODUCT EVALUATION

A Case of Electrical Appliances and Motor Spare Parts

Patrokil Kanje


This study aimed at investigating country of origin effects on product evaluation and specifically on theeffects on quality perception, satisfaction and intention to buy for electrical appliances and motor spareparts. The study also looked at other related factors which include price, brand name, availability, andappearance. A random sample of 93 customers was studied using a cross sectional survey and threehypotheses guided the study. The first hypothesis proposed that a relationship exists between country oforigin and customers perception of quality. The second hypothesis proposed that Countries of origineffects on product evaluation by customers are similar between electrical appliances and motor spareparts. Finally, it was hypothesized that there is an association between country of origin and purchasedecision/intention by customers

The study revealed that a significant relationship exists between country of origin and perception ofquality by customers in the purchase decision. It was also found out that customers perceptions differ interms of products durability, accessibility, ease of use and performance based on country of origin. However,price has been found to outweigh country of origin effects in influencing purchase decision. In certain cases

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country of origin effects are similar across the two product classes of electrical appliances and motor spareparts.

Relevant recommendations for prompt action and further research include research on hybrid products,places and other factors have been made to other researchers. Other studies that have been conducted inthe developed world can also be replicated in the developing world for better and more accurategeneralizations.

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FACTORS INFUENCING DEFAULT IN A GROUP LENDING MODEL USED BY MICRO-FINANCE INSTITUTIONS IN TANZANIA

A Case Study of PRIDE (T) & PTF

Suzana Sakilu


The study investigated Factors Influencing Default in a group Lending Model used by Micro-financeInstitutions (MFIs) in Tanzania. Three objectives guided this study, namely, to investigate whether or nottransaction costs incurred by MFIs clients result to default, to examine multiple membership in relation toloan repayments and to investigate if the default in MFIs has any impact on client population.

The study was conducted in Dar es Salaam region and a survey approach was used. The samplecomprised 120 respondents from two MFIs. Data collection was undertaken through questionnaires,semistructured interviews and documentary review.

Findings from the study reveal that transaction costs do not have an impact to loan repayment basing onthe fact that, MFIs clients regard weekly meetings as a chance for exchanging new ideas about business.Likewise, the study reveals that multiple membership influence loan default. Comments given were due tosmall amount of loan, lack of clients awareness and culture of being unsatisfied. Lastly, the study revealsthat loan default in MFIs influence clients to dropout. The reasons given included: good clients are discouragedto waste their time and money paying for defaulters.

The study concluded that both MFIs and their clients had a vital role to play in order to improve loanrepayment. The study insisted training to MFIs clients in order to acquire basic knowledge in running theirbusiness. The study recommended that in order to assure good repayments, MFIs should train their clients,provide them a grace period as well visit their business before providing the loan.

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AN ASSESSMENT OF FACTORS LEADING TO FUNGIBILITY OF CREDIT AND ITSIMPACT ON MICROFINANCE LOAN DELINQUENCY

The Case of The National Microfinance Bank LimitedMuhidin R.S. Ally

Master of Business Administration (Finance), November 2006The main objective of this study was to assess factors leading to the fungibility of credit and its impact onloan repayment in the National Microfinance Bank Limited. Fungibility is said to have significant contributionon the performance and quality of loan portfolios of the commercial banks.

The total of 111 respondents from four National Microfinance Bank branches in Dar es Salaam wassampled. Both qualitative and quantitative methods were used in data analysis. SPSS and Microsoft Excelprograms aided data analysis. Simple linear regression models were used to test relationships that theresearcher was interested to find out.

It was found that factors leading to fungibility of credit in the National Microfinance Bank Limitedincluded clients strategies of managing shocks, propensity to acquisition of fixed assets, high cost ofcredit, short product line and information asymmetry among others. At 5% level of significance it wasconcluded that there is significant statistical relationship between fungibility of credit and loan delinquencyin the Bank. It was also concluded that Banks policy on fungibility of credit does not address the problemon its entirety. Lastly it was also found that fungibility of credit has positive relationship with frauds, misconductand dishonest among employees and that it accounted for the greater part of the present delinquency andportfolio performance problem in the bank.

***************DEBIT CARDS AND CUSTOMER SATISFACTION

The Case of CRDB Bank LtdCatherine Zakaria Ringo

Master of Business Administration (Finance) September, 2007The general objective of this study was to investigate on debit card usage and customer satisfaction. Thestudy investigated on the level of customer satisfaction from using debit cards and challenges that customersface from using of debit cards.

The study utilized the survey method of data collection. It was conducted in Dar es Salaam and datawere collected from CRDB bank.

The study has established that there is a positive response for customer satisfaction in using of debitcards among the people interviewed. The study however established that there are challenges facing customerin using the debit cards. Challenges include frequent break downs of the ATM machine, limited cashwithdrawal amount, narrow services offered by the card, few ATMs and POS centres, time consumingservices due to long queues etc.The study recommends the need for the banking institutions to ensure cash availability at ATMs at all the

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times, increase the number of POS and ATM centres, regular servicing and monitoring of the machines toensure their reliability, sharing of debit cards among banks,. The study also recommends for the bankinginstitutions to reduce withdraw charges, more advertisements and education to create awareness andincrease number and frequency of use, increase and integrate number of services, ensure high speedservices, increase amount of money that can be withdrawn.

***************DISPOSAL AS A PUBLIC ASSETS MANAGEMENT STRATEGY

AN EVALUATIVE STUDY OF DISPOSAL OF GOVERNMENT RESIDENTIALPROPERTIES IN TANZANIA

Siasa IssaMaster of Business Administration (Finance), November 2006

Nearly all countries own or control substantial portfolio of public assets, including residential properties.Although governments generally attendwith greater or less experienceto the day-to day operationalneeds of their assets, few such governments think of their assets as a portfolio whose composition might bemodified to better serve public purposes.

The study aims at evaluation of disposal of residential properties in Tanzania that commenced in 2002which involves the disposal of government and public corporations residential properties. The study isbased mainly on a review of practical, academic, and institutional literature. It also uses data from TBA,individuals who purchased the public residential properties in Dar es Salaam and real estate experts.The findings of this study reveal that the exercise was not properly conducted given the best practices ofthe disposal of public assets. This is substantiated by the fact the government does not maintain theNational Asset Register, not appropriately selected the buyers of public residential properties, did notfollow the disposal route and did not conducted post disposal appraisal. It also becomes evident that thegovernment still needs those houses and efforts need to be made to repossess some of the disposedresidential properties.

Finally, the study provides recommendations to the government on the actions to take to ensure that thepublic assets are managed efficiently in order to benefit all citizens who are the ultimate owners of thepublic assets.

***************THE ROLE OF MARKET SEGMENTATION IN ENHANCING FIRMS SERVICE

DELIVERYThe Case of Mobile Phone Companies in Tanzania

Ahimidiwe MassaweMaster of Business Administration (Marketing), November 2006

The study had three specific objectives; to examine the role played by market segmentation in enhancing


mobile phone companies service delivery, whether quality of service delivered resulting from segmentationenhances customer satisfaction and whether the quality of service resulting from segmentation leads toincreased mobile usage.

Findings of the research show that to a great extent market segmentation improves quality of servicedelivered to customers. There is a strong relationship between the quality of service delivered and customersatisfaction and contribute significantly to increased mobile usage.

Conclusively, it is evident that in order to provide quality service and be able to satisfy customers,companies need to understand well their customers and segment them according to their specific homogenousneeds and serve them better than their competitors do.

***************RELATIONSHIP QUALITY AND CUSTOMER LOYALTY IN THE MOBILE

TELECOMUNICATION COMPANIES IN TANZANIAGabriel Redson Makupa

Master of Business Administration (Marketing), November 2006This research studies relationship between relationship quality and customer loyalty in selected mobiletelecommunication companies (MTCs) in Tanzania. The researcher was interested in establishing therelationship between relationship quality (RQ) and customer loyalty with specific reference to mobiletelecommunication companies.

The study took the form of a cross-sectional survey design, using self-administered Questionnaires. Itwas carried out in 3 mobile telecommunication companies and involved 300 customers in Dar es Salaam.Tables were used to describe the characteristics of respondents. Pearson correlation was employed toestablish association between the studied variables and to answer the research questions. Regressionanalysis was also used to explain the extent to which the independent variable predicts the dependentvariable.

The findings revealed a significant relationship between relationship quality components, i.e social bondand customer loyalty, which is consistent with the previous works done in the same area. This call for theneed of strengthens relationship with customers if telecommunication companies in Tanzania want to wincustomer loyalty and hence sustain their business.

***************CORPORATE GOVERNANCE FOR PENSION FUNDS IN TANZANIA

A Comparative Study of PPF and NSSFMohamed A. Ahmed

Master of Business Administration (Finance), November 2006Government-mandated pension plans exist, first and foremost, to provide some assurance of adequateincomes for citizens in retirement. The primary objective of these mandatory retirement saving programs isto ensure that workers would not face hardship in their retirement years and to ensure that governments

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are not faced with large social welfare costs if myopic workers did not save for retirement when they wereworking. The broad objective of this study was to assess and make a comparison between PPF andNSSF in the context of corporate governance in their operations. The study involved two pension funds,namely NSSF and PPF. Quantitative and qualitative research approaches were used to collect information.The results were presented and discussed using the list of criteria developed in this study.

Findings indicated that, while poor governance in both NSSF and PPF were observed in terms ofappointing and dismissal of CEO, appointing board members, good governance were observed in termsof term of office and holding of other government offices by CEOs, policy formulation of the pensionfunds, types of investments, gauging the risk of investment and procedures for investment decisions. Despitesome little weakness observed in the pension funds in Tanzania, generally they reveal good governance interms of their daily operations. To improve good governance of pension funds in Tanzania in their operations,the study suggests that CEOs appointment should be done by the Board of Trustees instead of the Presidentas it is currently. The tripartite representation of the board of trustees is good but should include pensioners.

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FACTORS AFFECTING CELLULAR PHONE USAGE IN TANZANIA

Rick Eliud Kikota

Master of Business Administration (Marketing), 2006

Cellular phone usage in Tanzania has increased since the introduction of this important service. This researchwork were aimed on studying factors influencing the adoption and usage of cellular phone in Tanzania; androle of promotional campaign in cellular phone industry in increasing cellular phone usage. The country hasnot achieved the MDG target figure of cellular phone users.

It was hypothesized that perceived benefits, affordable pricing and other factors need to be controlledso that the country can increase the number of people using cellular phone. Primary data was collectedfrom the user of cellular phone, and was captured by the aid of a questionnaire. Collected data wereanalysed by simple frequencies and Chi-square tests.

It was revealed that majority of the respondents are of the opinion that usage of cellular phone increasesproductivity at their works and it is convenient to use. Also majority do no agreed that cellular phone usageis due to price being charged by network provider. The majority of the respondents are of the opinion thatpromotion made by network provider attracts them in cellular phone usage. Also in average usage ofcellular phone is influenced by advertisements and price review from network provider.

It was concluded that the use of marketing strategies by network provider has no significant relationshipwith increase in cellular phone usage. This suggest that there are other factors that may influence theincrease of people using cellular phone in Tanzania

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INFORMATION SYSTEMS SECURITY MODELLING IN ORGANIZATIONAbamwesiga Kiiza Beneth

Master of Business Administration (Finance and Information Systems), November 2006The objective of this research was to formulate a model for explaining the triggers of information securitymanagement (ISM). The ISM is influenced by three major factors: the senior management perception ofsecurity risk, the internal and or external security events that are deemed significant when they occur andthe perceived strategic importance of information system in the organisation.

The research employed the positivist methods to evaluate the factors influencing the change in informationsystem security management in the organisations. A sample of 35 organisations was selected; theseorganisations were using information system as the strategic system and were using the system in the lastthree years during the period of study. The structured questionnaire was used for data collection.

Data analysis was done using quantitative techniques including proportions, factor analysis and chi-square test. The study findings are: that information risk awareness amongst directors and senior managerinfluence how information security reviews take place, the perceived strategic importance of the informationsystem in achieving the organisation objective and the influence of external and or internal security eventsthat are important by the management does influence the information security management practices.

The research concludes that, there is an intricate relationship between perception of risk and ISM, therelationship between perceived strategic importance of IS and ISM practice and external an or internalsecurity events does influence the way the ISM practice is conducted in organisation.

The research, therefore, recommends that apart from the contemporary technological approach, securinginformation should take a strategic perspective in addressing risk perception amongst senior executive andas well address other issues such as information culture, awareness and constantly scanning the environmentboth within and outside to monitor surfacing new security threats and adjust the controls to mitigate theserisks.

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TAX COMPLIANCE ISSUES ON SMALL AND MEDIUM SIZED ENTERPRISESSECTOR IN TANZANIA

The Case of Small and Medium Sized Enterprises in Dar es Salaam Region

Ndete FarajiMaster of Business Administration (Finance), November 2006

Tax compliance is a serious and costly problem to SMEs in most developing countries. This study seeks toexplore the tax compliance issues on SMEs in Tanzania. Thus, the study attempted to establish the keyreasons of non-compliance and give out the suggested solutions to problems that lead to non-compliance.

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`In this study, the researcher used snowball sampling approach in order to include SMEs who operateoutside of the tax net i.e. informally. The questionnaires were used to allow respondents to express theirtax views freely. The study uses both qualitative and quantitative methodologies to analyze the data.

The study found out number of factors that cause non-compliance of SMEs with the tax law in Tanzania,these are: - lack of knowledge by the taxpayers, high tax charged to SMEs, lot of time required for taxcomputation, poor business performance, limited time for tax payment, complexity of tax law, poor financialrecords, variations on turnover, corruption of some TRA officers, and liquidity problem. Further more, thestudy suggested possible solutions to problems revealed.

Non-compliance of SMEs in Tanzania with the tax law is mostly caused by lack of tax knowledge andcomplexity of the tax law. Therefore, the tax authority could improve tax compliance through educatingSMEs on tax matters and by being transparent.

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LIQUIDATION OF PUBLIC ENTERPRISES IN TANZANIAAND ASSOCIATEDPROBLEMS IN PAYMENT OF EMPLOYEES TERMINAL BENEFITS

The Case of Mwanza Textiles Limited

Juvenalis Motete

Master of Business Administration (Human Resource Management), November 2006

This study was conducted to investigate liquidation of public enterprises in Tanzania and associated problemsin payment of employees terminal benefits. MWATEX (In Liquidation) was taken as a case study. Theprinciple objective of this study was to examine and document factors behind problems associated withpayment of employees terminal benefits of liquidated public enterprises in Tanzania, and to suggest remedialand appropriate measures that could be taken to reverse the trend.

Data for this study was collected using both secondary sources and structured self-administeredquestionnaires. A random sample of 250 was selected out of 1,723 employees, who were on roll as ofOctober, 1993. 150 (or 60% of the targeted sample) employees responded. Data were analyzed usingSPSS.

Findings of the study revealed that terminal benefits offered to employees of liquidated public enterprisesare inadequate, there is lack of awareness on the part of the employees with respect to the proceduresinvolved and their rights to terminal benefits, and employers and pension Funds mishandle payment ofterminal benefits. As a result, the study recommends the establishment of strong and independent tradeunions to advocate for the rights of their members, and treating legal prescriptions as merely laying downminimum terms on terminal benefits thereby adopting other non legal means (e.g. social corporateresponsibility) to achieve equitable terminal benefits.

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INVESTIGATION OF THE FACTORS INFLUENCING CUSTOMER SATISFACTION INTOURIST HOTELS

The Case of Dar es Salaam

Nasra Kara


Highly significant changes are currently taking place in tourism, with a notable increase in competitionbetween hotel companies and especially between emerging and consolidated tourist destinations. Due tosuch a fact, this study specifically endeavored to investigate the factors influencing customer satisfaction intourist hotels in Dar es Salaam.

Both qualitative and quantitative data were used to generate reliable data, to identify study factors likeperceived service quality, perceived price and hotel location. Data were collected from fifteen touristhotels in Dar es Salaam. Primary data were collected through using structured questionnaires and observationwhile secondary data were considered as well. The analysis of the research data was done by using SPSSpackage whereby a non- parametric test (chi square test) was used to test the strength of the observedvariables, and multiple regressions was used to test the proposed hypotheses.

The overall findings revealed that hotel customers were satisfied to a great extent with the services theyreceived in tourist hotels, while the hotel locations in the city centre and the reliability in maintaining dailymenu proved to be a less significant factor in influencing customer satisfaction. However, it has noted beenthat, in order for hoteliers to operate well in the competitive environment, training should be given to hotelworkers, the price of food and beverage should be reduced and additional services should be available inhotels located in the city centre.

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CHALLENGES AND POSSIBILITIES OF MAKING MARKETS WORK FOR THEPOOR:

The Case of Barrick Gold Mines in Tanzania

Chediel Nyirenda

Master of Business Administration (Finance), September 2006

The mining sector in Tanzania employs many people and therefore makes huge purchases both locallyand internationally and could make a big market for local products. This research was conducted inKahama, Tulawaka, and Buzwagi. The objectives were to identify the needs of Barrick, to analyze localcapacity to supply these needs, to identify the challenges hampering this capacity and then suggest a localprocurement strategy that would add value to both Barrick and the local SMEs. Visits were made to the

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mine sites and to the surrounding communities and interviews conducted with key personnel. Importantdocuments were also reviewed.

This research has found out that there is a good potential for local entrepreneurs to supply the needs ofBarrick Gold Mines in Tanzania. The local entrepreneurs do not meet the quality and reliability standardsthat cannot be compromised by Barrick. It was also found that Barrick contributes a lot to communitydevelopment through building schools, wells, a market and a hospital and they employ many local people.They have done a lot of other forms of charity.

In spite of these offers Barrick still needs to take a step further and engage in social enterprise developmentto support the actual economic development. One step is by forming an Entrepreneur Resource andInformation Centre. Difficult policy regulations should be dealt with, the business formalization sped upand local entrepreneurs should engage in the formation of companies in order to become competitive

***************CHALLENGES OF INFORMATION SYSTEMS IN SUPPORTING BUSINESS NEEDS OF

INSURANCE COMPANIES IN TANZANIA A Case Study of Heritage Insurance Company Tanzania Limited

Evan Makundi ElisafishaMaster of Business Administration (Human Resource Management), November 2009

Information system adoption has become part and parcel of modern business both in developed countriesas well as developing countries. Many organizations particularly in the financial sectors are heavily dependenton information systems to execute their daily operations and provide management with viable accurate,timely, relevant information for decision making.

Insurance companies have not been left behind in the quest for adopting information system in theirbusinesses. However the process of adopting these systems has not been without hitches. Many companieshave spent lots of money in anticipation of getting a system that will meet their business needs throughimproved service delivery and efficiency, but to their surprise they end up being frustrated by getting asystem that does not meet their requirements and expectations.

This study focused on challenges of information system in meeting business needs of insurance companyin Tanzania, a case study of Heritage Insurance Company Tanzania Limited.

Data was collected through the use of structured questionnaires from employees of Heritage Insurance.The total number of employees responded to the questionnaire were 38 out of 50 employees of HeritageInsurance. Based on the variables and the stated hypothesis, the full regression model was analyzed.Various probability theories were used in an attempt to answer specific questions based on variables andstated hypothesis.

The finding of this study reveals that usefulness, information quality, ease of use and vendor support hassignificant impact on information system users acceptance at Heritage Insurance. However these are notthe only variables that have significant influence on user acceptance, it may be assumed that other variablessuch as management support, user involvement in acquisition, implementation process, and motivational,behavioral and attitudinal components might as well have a significant influence on information system useracceptance.

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FACTORS AFFECTING HUMAN RESOURCES PLANNING PRACTICES IN PRIVATEORGANIZATION

The Case of CRDB Bank Limited in Tanzania

Rukia Msusa

Master of Business Administration (Human Resources), November 2009

The main objective of this study was to explore factors affecting Human Resources Planning practises inprivate organization, a case of CRDB Bank. Despite the efforts made by organizations to ensure that thereare right people, in the right place, at the right time, there are still some challenges in the whole process ofimplementation of effective Human Resources Planning in the Tanzanian private organizations. Failing toproperly plan for their human resources, employers are forced to become reactive, rather than proactive.This tendency of reactiveness causes problems of rush recruitment which sometimes led to wrong recruitments.Respondents were drawn from CRDB Bank staff in three different branches. Sample of 60 respondentsout of 196 were selected by using simple random sample. Questionnaires and documentary review wereadopted as main tools of collecting data.

Findings revealed poor implementation of HRP at CRDB Bank, and realized factors affecting HRPPractises at CRDB Bank such as limited budget, ad hoc decisions, labour turnover, improper linkage ofHRP activities with corporate strategy, improper information of HR, inadequate appreciation of the valueof HR, lack of retention plan, and poor communication. The study concluded and recommended the needfor the realization of HR as the most valuable assets and develops an appropriate reward system that willattract and retain employees in order to achieve a competitive advantage. CRDB Bank should considerrecruiting HRP professionals, who will ensure that recruitment is done with minimal errors, so that rightpeople, to be in their right place, at the right time. HRP at the CRDB Bank should be established in amaster plan where by the requirements of each project that is initiated should be incorporated in thebudget.

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ASSESSMENT OF TIMELINESS OF FINANCIAL REPORTING

The Case of Muhimbili University of Health and Allied Sciences in Tanzania

Mussa Hamid Mzuzuli


The problem of untimely financial reporting in the public institutions has become critical as far as theController and Auditor General (CAG) of Tanzania is concerned. Among the most affected areas in delayof submission of financial statements for auditing are the public Universities.

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The main objective of this study was to make an assessment of timeliness of financial reporting at publicUniversities in Tanzania and to assess factors which affect preparations and submission of financial reports.This case study conducted at the Muhimbili University of Health and Allied sciences (MUHAS). TheMUHAS financial report and nine other financial reports from donor funded research projects, from2002- 2008 were randomly selected and analysed. Questionnaire were prepared and distributed to variousstaff at the University. The financial reports for the period covered were obtained, their issue date andauditors report types were recorded and analysed.The study found that; no significant associations observed between the number of staff, their experiences,professional educational level, and work structure, frequency of producing financial reports and the degreeof internal control with the timeliness of financial reports.The study results imply that; there other factors that may be associated with timeliness of financial reportthat need to be researched or the same variables using higher level of significant.

***************AN INVESTIGATION OF THE STATE OF AUDITOR INDEPENDENCE IN SMALL

AUDIT FIRMS IN TANZANIAPatrice Deemay

Master of Business Administration (Finance), November 2009Professional standards require auditors to be independent in the performance of attestation services. Criticsof the accounting profession have expressed concern that, pressure to maintain and develop businessopportunities may erode an auditors objectivity and independence especially for small audit firms whenmaking audit judgments.

This study investigated the state of auditor independence in small audit firms in Tanzania. Four specificresearch objectives were developed. These were: to assess the extent of auditor rotation in the small firms;to assess the proportion of non-audit fee to total fee from a client; to examine the extent of price competitionin the small audit firms and to assess the proportion of audit firms financial dependence from a client.

Data was collected from fifty-four respondents comprised of; twenty small audit firms, four big auditfirms and thirty client firms by using both close and open ended questionnaires developed for that purpose.Data obtained were analysed quantitatively using the Statistical Package for Social Sciences (SPSS)especially Frequency Tables and Percentages.

The findings indicated that the rotation of audit firms/partners in small audit firms seemed to be rarelypracticed and hence their independence is in question. Also perceptions of auditor independence werestatistically significantly lower for the cases where the audit firm performed non-audit services in additionto audit services. It was also found out that small audit firms are influenced by their clients to reduce auditfees especially during initial engagement something detrimentally impair their independence. However, theassessment of small audit firms financial dependence over individual client did not indicate great impact.

It is recommended that regulators set certain minimum number of partners to be able to undertakerequired audit rotation; also to limit the number of non-audit services to be offered by a firm to two or threeonly, and finally a compulsory formation of audit committee in the clients firms corporate structure.

***************THE ROLE PLAYED BY TAX PRACTITIONERS ON VALUE ADDED TAX (VAT)


COMPLIENCE IN TANZANIA

Venance Mshana


The main objective of the study was to evaluate whether Tax Practitioners enhance Taxpayers ValueAdded Tax compliance in Tanzania. Specifically Tax practitioners knowledge in VAT laws, reliability oftheir advice given to taxable persons and the level of accuracy observed on VAT returns prepared by taxpractitioners were assessed. Factors that influence taxpayers decision to engage tax practitioners werealso evaluated. The study is a sample survey conducted in Dar es Salaam region covering 72 VAT registeredtaxpayers, 34 Tax officials and 5 Tax practitioners.

Result from the study show that tax practitioners have sufficient knowledge in VAT laws; exhibit highskills and professional competency; and advice their clients accurately. VAT returns prepared by Taxpractitioners are more accurate than those returns prepared by the taxpayers themselves. Further resultsshow that factors which forced the VAT registered taxpayers to use tax practitioners includes amongothers lack of tax and accounting knowledge, complexity of tax laws and objectively to have the mostcorrect VAT returns.

The study recommends the enhancement of tax education program as it will increase the taxpayersability to understand the tax system thus enabling them to have clear conscience in carrying out theirresponsibilities. Simplification of tax laws, improvement of taxpayer services and recognition of taxpractitioners as the key stakeholders in building voluntary VAT compliance. Lastly further research areashave been identified.

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THE USE OF FINANCIAL STATEMENTS INFORMATION IN THE LENDINGDECISION PROCESS IN TANZANIA

The Cases of CRDB, NBC and NMB Bank

Salama Mohamed


This research aimed at assessing the use of financial statements information in the lending decision processin Tanzania. It analyzed the key information required by banks in their lending decisions and assessed thequality of information contained in financial statements that result into favourable bank lending. The samplewas selected randomly from loan officers of the three financial institutions which were NBC, NMB andCRDB. Total respondents were 88 and the tools used for collecting data were questionnaires and interview.The data were then processed and analyzed through SPSS and presented in form of tables, frequenciesand percentages. The findings of the study revealed that the key information required by banks in the

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lending decisions were Balance Sheet, Income statement, Business Plan and Budget for next years. Thestudy further discovered that there are other information required by banks in their lending decisions.These include stock and debtors list, residential assurance of the borrower, availability of collateral andintegrity of the borrower.

The conclusion reached is that, the quality of the financial statements information is something verycrucial in lending decision process as it influences the lending decision. Finally, the study recommendsfurther studies to examine the use of financial statements information in non banking financial institutions inTanzania and to establish a relationship between auditors attestation of the financial statements and thedegree of reliability of the same in relation to adequate repayment of the loan.

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FACTORS LEADING TO INVESTORS INACTIVE TRADING OF SECURITIES IN THESECONDARY MARKET

The Case of Dar es Salaam Stock Exchange (DSE)

Lawrence Mworia


The general objective of this study was to investigate the factors that are leading to investors inactivetrading at DSE market. The study investigated the factors that are causing the public to shy away from thesecondary trading of securities, the factors that hinder the awareness of DSE by the public as well as therelationship between the information given out by the DSE and the publics perception. The study populationincluded the officials from the CMSA, DSE, as well as investors and non-security investors. Both primaryand secondary data were collected and analysed through quantitative and qualitative methods.

The study found out that there are a number of factors causing the public to shy away from the secondarytrading of shares, including little or lack of capital to invest, and the desire to gain a profit due to share priceappreciation. Factors identified to be hindering awareness of security trading with DSE include low level ofeducation, lack of interest by the public, difficult in understanding the technical information given and theculture of unwillingness to change. The study recommends that both CMSA and DSE should play anactive role of awareness creation and capacity building through training and aggressive promotion activitiesto raise the public awareness of the DSE operations. The public and potential investors are also advised totake a step forward to understand how the market operates, what opportunities are available and also tomobilize funds for investing in the trading of shares.

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THE EFFECTIVENESS OF CAPITAL DEVELOPMENT GRANTS IN POVERTY


ALLEVIATION IN TANZANIAThe Case Study of Four Selected Councils in Ruvuma Region

Ndaki StephanoMaster of Business Administration (Finance), November 2009

This study made an assessment of the effectiveness of Local Government Capital Development Grants(LGCDGs) in poverty alleviation in four councils of Ruvuma Region in Tanzania: Mbinga District Council,Songea Municipal Council, Songea District Council and Tunduru District Council. The data collectedcovered the period of 2004-2009 and provided enlightening insights for the situation in the four councilswith respect to various development growth indicators in this period. Out of 148 targeted respondents,122 (82%) gave full usable responses. Data were collected by using questionnaires, document review,interview and observation, and both quantitative and qualitative research procedures were used in dataanalysis.

The key findings of the study were: (a) the local investments were being made in accordance with localneeds as determined through local participatory planning and budgetary processes,( b) The received funds were being channeled to the projects and uses as intended and there is animprovement/expansion for physical stock of new and rehabilitated infrastructure, (c) The communities,specially the poor, have improved their access to local services, and (d) There was a positive relationshipbetween the LGCDGs received by Local Government Authorities (LGAs) and the standard of living of thelocal community.

Lastly, the study concluded that most of the local communities were aware of the LGCDG system andparticipates effectively in projects planning and implementation, but

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