NATURE AND CAUSES OF LABOUR RETENTION AMONG

PUBLIC AND PRIVATE HOSPITALS

A Case Study of Muhimbili National Hospital in Dar es Salaam and
Selian Lutheran Hospital in Arusha


By
Bony


Supervisor:

Dissertation Proposal submitted for the Partial Fulfillment of the Requirements
for the Degree of Master Public Administration of the University of Dar es
Salaam


University Of Dar Es Salaam
September, 2013
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LIST OF ABBREVIATIONS
DoD Department of Defense
FBM Faculty of Business Management
FGDs Focus Group Discussions
GWA Gallup Workplace Audit
HBL Habib Bank Limited
HR Human Resources
HRM Human Resources Management
ICT African Information, Communication and Technology
IT Information Technology
KM Knowledge Management
MBA Masters of Business Administration
MNCs Multinational Corporations
OUT the Open University of Tanzania
SAIs Supreme Audit Institutions
SASE Tanzania Selective Accelerated Salary Enhancement
TANESCO Tanzania Electrical Supply Company
TM Talent Management
UDSM University of Dar es Salaam
MNH Muhimbili National Hospital
SLH Selian Lutheran Hospital




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TABLE OF CONTENTS
LIST OF ABBREVIATIONS ....................................................................................... i
TABLE OF CONTENTS ............................................................................................. ii
CHAPTER ONE : INTRODUCTION AND BACKGROUND TO THE STUDY ..... 1
1.1 Introduction ............................................................................................................ 1
1.2 Background to the study......................................................................................... 1
1.3 Statement of the Problem ....................................................................................... 5
1.4 Objectives of the Study .......................................................................................... 7
1.4.1 General objective ................................................................................................ 7
1.4.2 Specific objectives .............................................................................................. 7
1.5 Research Questions ................................................................................................ 7
1.6 Significance of the Study ....................................................................................... 8
1.7 Structure of the Dissertation................................................................................... 8
CHAPTER TWO: LITERATURE REVIEW ............................................................ 10
2.1 Introduction .......................................................................................................... 10
2.2 Definition of the key Terms ................................................................................. 10
2.2.1 Employee retention ........................................................................................... 10
2.2.2 Employee......................................................................................................... 10
2.3 Theoretical studies ............................................................................................... 11
2.4 Empirical Literature Review ................................................................................ 15
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2.5 Study Gaps ........................................................................................................... 27
2.6 Research Model/Conceptual Framework ............................................................. 28
CHAPTER THREE : RESEARCH METHODOLOGY ........................................... 30
3.1 Introduction .......................................................................................................... 30
3.2 Research Design ................................................................................................... 30
3.3 Population of study .............................................................................................. 32
3.4 Sample and Sampling Procedure ......................................................................... 33
3.5 Research Instruments ........................................................................................... 33
3.6 Data Collection Procedure data types .................................................................. 34
3.7 Data Analysis ....................................................................................................... 35
3.6 Unit of Analysis ................................................................................................... 36
3.7 Reliability and Validity of study .......................................................................... 36
3.7.1 Reliability .......................................................................................................... 36
3.7.2 Validity .............................................................................................................. 37
TIME SCHEDULE OF THIS PROPOSED STUDY ................................................ 38
PROPOSED BUDGET FOR THIS STUDY ............................................................. 38
REFERENCES ........................................................................................................... 39
APPENDICES .......................................................................................................... 44
Appendix I: Questionnaire ......................................................................................... 44
Appendix II: Interview Guide questions .................................................................... 48

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1


CHAPTER ONE
INTRODUCTION AND BACKGROUND TO THE STUDY
1.1 Introduction
This part provides the background to the research problem; statement to the research problem;
objectives of the study; research questions as well as significance of the research to policy,
academia, and increasing knowledge.
1.2 Background to the study
Organizations invest a lot on their employees in terms of induction and training, developing,
maintaining and retaining them in their organization. Therefore, managers at all costs must
minimize employees turnover. Although, there is no standard framework for understanding the
employees turnover process as whole, a wide range of factors have been found useful in
interpreting employee turnover Kevin et al. (2004).
According to Abassi et al. (2000) Employee turnover is the rotation of workers around the labour
market; between firms, jobs and occupations; and between the states of employment and
unemployment. Also, Price (1977) defined turnover as the ratio of the number of organizational
members who have left during the period being considered divided by the average number of
people in that organization during the period. In a human resources context, employee turnover
or labour turnover is the rate at which an employer gains and losses employees. Simple ways to
describe it are "how long employees tend to stay" or "the rate of traffic through the revolving
door." Turnover is measured for individual companies and for their industry as a whole. If an
employer is said to have a high turnover relative to its competitors, it means that employees of
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that company have a shorter average tenure than those of other companies in the same industry.
High turnover may be harmful to a company's productivity if skilled workers are often leaving
and the worker population contains a high percentage of novice workers. Employee turnover can
be caused through an employee being dismissed from the organization, an employee resigning
from the organization or an employing retiring. Reasons for turnover can be due to both internal
and external factors and will vary between different groups of employees and the individual
employees themselves.
Employee turnover is affected by the organizations external and internal environmental factors.
Increase in demand and better working conditions for particular skilled labour in the industry, the
social and cultural factors of the environment within which the organization operates are all
external factors that influence employee turnover. Internal factors such as the organizations
structure, reward packages and policies also affect the employee turnover.
The retention of employees has been shown to be significant to the development and the
accomplishment of the organizations goals and objectives (Alkandari and Hammad, 2009).
Retention of employees can be a vital source of competitive advantage for any organization.
Today, changes in technology, global economics, trade agreements and the like are directly
affecting employee/employer relationships. Until recently, loyalty was the cornerstone of that
relationship (ibid, 2009). The loss of talented employees may be very detrimental to the
companys future success. Outstanding employees may leave an organization because they
become dissatisfied, under paid or unmotivated (Coff, 1996), and while trying to retain
employees within the organization they may present other challenges as well. They may demand
higher wages, not comply with organization practices, and not interact well with their coworkers
or comply with their managers directions. Besides these problems asymmetric information or
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lack of information about the employees performance may complicate an organizations
endeavor to retain productive employees. It is argued that without adequate information the
organization may not be able to distinguish productive workers from non-productive ones (Coff,
1996). Employees often may take credit for the successes and deflect failures to other employees
and this is known as a moral hazard problem. In many instances companies may reward or
punish employees for an organization outcome for which they had no impact (Kerr, 1975).
Insufficient information about employees performance may result in adverse selection by them
(Grossman and Hart, 1986). The better employees may move to other organizations for better
opportunities. The coworkers who cannot improve their positions are more likely to stay. This is
especially possible when due to inadequate in formation outstanding performance is not
rewarded. Non-productive and productive workers end up receiving the same or nearly the same
compensation and package of perks because of managements in ability to distinguish talented
employees from the rest of the labor force in the organization.
The problem of attempting to keep talented members of the work force is further complicated
because of bounded rationality (Simon, 1976). It is another result of asymmetric in formation
where both the manager does not know the information for which to ask from the employee and
the employee does not know what to provide. Therefore, productive workers cannot distinguish
themselves from nonproductive coworkers.
Even if an organization is fortunate enough to retain talented employees, the company may still
have to cope with agency costs resulting from them and their colleagues. When information
about an employees activities is difficult to gather, the employee may be motivated to act in his
own interest which may diverge from the interest of the organization. This divergence of
4


interests results in costs to the organization in the form of excessive perquisite consumption,
shirking of job responsibilities and poor investment decision making. Jensen and Meckling
(1976) explained that it is in an employees interest to over consume perks and shirk job
responsibilities of the firm if they are not sole owners of the organization. Employees may also
be enticed to make suboptimal investment decisions for the firm. Since most company
employees have their wealth tied up in the organization for which they work, employees may
attempt to make investment decisions which are less risky than the stock holders of the firm
would prefer. This is done to reduce the risk of failure by the company, which protects the no
diversified employee from loss of wealth. This investment strategy may also reduce the return on
investment that the diversified owners of the firm desire (Murphy, 1985). The employees or
agents of the organization may also use a short sighted approach in investment selection to
enhance their own career chances (Narayanan, 1985). The employee can signal the labor market
his superiority through the selection of a fast starting project, which may fizzle out later for the
firm. This strategy may cause the firm to miss profitable long-term projects or much needed
research and development. Employees may also attempt to increase the size of the firm through
acquisitions and project selection regard less of the effect on company profitability in order to
increase their own power base within the firm.
Another area contributing to decreased employee satisfaction is that of a companys motivational
style. For example Weinberg (1997) states that most companies relied in the past on two
traditional strategies for managing turnover. First, they raised wages until the situation stabilized.
If that did not work, they increased training budgets for new hires and first-level supervisors.
These solutions do not work anymore. Furthermore, skilled employees in many African countries
including Tanzania were migrating abroad on daily basis for better job conditions (Gillingham,
5


2008). This phenomenon was having adverse effect on investment as emigrating employees
moved clients investments offshore.
Furthermore, evidence from the implementation of the Tanzania Selective Accelerated Salary
Enhancement (SASE) Scheme adopted in 2000 suggests that departments were better able to
attract and retain qualified professional, technical and managerial staff; and encourage staff to
undertake further training to aspire for progression and to move up the career ladder. However,
the partial implementation of the SASE scheme gave rise to unfulfilled expectations,
engendering greater animosity towards the scheme and creating the perception that it was unfair
and discriminatory. Lastly, research from Malawi, Uganda and Tanzania (Wang and Rakner,
2005) found that low levels of funding were the main constraint on the capacity of the three
countries SAIs. In particular, the Malawi and Tanzania SAIs had had problems retaining
employees over the years. Although the situation had improved in Tanzania, staff pointed out
that it was a problem that the SAI could not offer competitive terms of service.
1.3 Statement of the Problem
Retaining top talent remains a primary concern for many organizations today. Critical analysis of
workforce trends points to an impending shortage of highly-skilled employees who possess the
requisite knowledge and ability to perform at high levels, meaning that organizations failing to
retain high performers will be left with an understaffed, less qualified workforce that ultimately
hinders their ability to remain competitive (Rappaport, Bancroft and Okum, 2003). Despite the
vast literature on employee turnover, which is aimed at identifying factors that cause employees
to quit (Griffeth, Hom and Gaertner, 2000) much less is known about the factors that compel
employees to stay. Maertz and Campion (1998) noted relatively less turnover research has
6


focused specifically on how an employee decides to remain with an organization and what
determines this attachment. Retention processes should be studied along with quitting processes.
Steel, Griffeth, and Hom (2002) added that the fact that is often overlooked, but the reasons
people stay are not always the same as the reasons people leave. Retention is a critical element
of an organizations more general approach to talent management, which is defined as the
implementation of integrated strategies or systems designed to increase workplace productivity
by developing improved processes for attracting, developing, retaining, and utilizing people with
the required skills and aptitude to meet current and future business needs (Lockwood, 2006).
Employee turnover occurs when employees leave their jobs and must be replaced. Replacing
exiting employees is costly to organizations and destructive to service delivery. It is therefore
imperative for management to reduce, to the minimum, the frequency at which employees,
particularly those that are crucial to its operations leave. Employee retention is a vital issue and
challenge to all the organizations now days. There are numbers of factors which promote the
employees to stay or leave the organization. It may be external factors, internal factors and the
combined effect of both. Human resource practices counts a lot in this regard (Hassan et al,
2010). Despite the fact that many studies have been done to establish factors leading to employee
staying or leaving the organizations, employee retention remain one of the greatest challenges
that many work organization including those in Tanzania faces. However, there are no published
or documented evidences which indicate that the same study was done in establishing factors
leading to labour retention in Tanzania work organizations. Therefore, this study aims to
investigate main factors for the retention in Tanzania work organizations.
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1.4 Objectives of the Study
The objectives of this study are divided into two main categories namely the general objective
and specific objectives as follows.
1.4.1 General objective
The general objective of this study is to assess the nature and causes of labour retention among
public and private hospitals in Tanzania with a case study of Muhimbili National Hospital in Dar
es Salaam and Selian Lutheran Hospital in Arusha.
1.4.2 Specific objectives
i. To assess the factors perceived by employees as influences their retention in each
organization;
ii. To assess employer psychological factors influencing retention in each organization
iii. To investigate different methods used by the organizations in retaining their best
employees in each sector;
iv. To identify constraints facing selected organizations in retaining their best employees.
1.5 Research Questions
i. What are the factors perceived by employees as influences their retention in each
organization?
ii. What are the employers psychological factors influencing retention in each sector?
iii. What are the methods used by the organizations in retaining their best employees in
each sector?
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iv. What are the main constraints facing selected organizations in retaining their best
employees?
1.6 Significance of the Study
The study is expected to make contributions to the expanding literature on issues related to the
influence of motivation on employees performance in Tanzania work organizations. Results
from the study will have significance to academia, extension of knowledge frontier as well as to
policy makers. The study will fulfill researchers academic need of acquiring Masters Degree of
Business Administration (MBA). The dissertation will also be used as an important reference
material to other academicians who will use the research document for further reference. The
future researchers will identify the gaps available for further studies. Furthermore, the study is
expected to provide knowledge on the influence of motivation on employees performance in
Tanzania work organizations. The research findings are also expected to raise some motivation
pitfalls which should be addressed by the selected companies in Tanzania. Similarly, the study
will also benefit policy makers, non-governmental organizations, civil society organizations and
community based organizations in policy making process and advocacy for the benefits of all
stakeholders in the brewing industry.
1.7 Structure of the Dissertation
This work has been organized as follows: - The first chapter focused on the introduction,
research background, and statement of the problem, general objectives, specific objectives, and
research questions as well as significance of the study. Chapter two dealt with definition of key
concepts, theoretical studies, empirical literatures, provides gaps as well as suggest model guided
the study. The third chapter forms the Methodology of the study. This chapter gives details of
9


how the research was conducted; the tools and the research design used the sampling procedure,
data collection and procedures adopted. Chapter four gave details of the presentation of analysis
and the discussion of data collected. Chapter five also dealt with the summary, conclusion,
recommendation of what came out of the study as well as further areas for research














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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This part covers the following areas of the study: - The first part makes some theoretical
reflection of the study. The second part explores the empirical literature review of the study. The
third part provides a literature gaps to be covered by the study. The fourth part provides
conceptual framework which guide this study.
2.2 Definition of the key Terms
2.2.1 Employee retention
There is no single definition of employee retention. Employee retention means keeping right
people on right jobs for every organization. Employee retention is all about keeping good people.
It is much to do with our culture and how we treat people. Retention is a voluntary move by an
organization to create an environment which engages employees for long term (Chaminade,
2007).
2.2.2 Employee
There is no specific statutory definition of the term employee (Albright, 2003). Labour Relations
Code defines an employee as a person employed by an employer, and includes a dependent
contractor, but does not include a person who, in the boards opinion, performs functions of a
manager or superintendent or is employed in confidential capacity in matters relating to labour
relations of personnel (Albright, 2003). ELRA (2004) defined employee as an individual who
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has entered into a contract of employment; or has entered into any other contract under which the
individual undertakes to work personally for the other party to the contract.
2.3 Theoretical studies
Reiche (2008) studied on the configuration of employee retention practices in multinational
corporations foreign subsidiaries by deriving a typology of retention practices and investigating
their applicability in multinational corporations (MNCs) foreign subsidiaries in the light of
home- and host-country effects. Linking institutional and strategic HRM perspectives, he
proposed a conceptual framework examining how MNCs can maximize their retention capacity.
Specifically, MNCs needed to align their transferable home-country retention practices with
overall strategy and complement them with flexible context-specific practices to allow for
adaptability across different subsidiaries. He is further argued that characteristics of the
headquarters-subsidiary relationship influences the relative importance of context-generalizable
versus context-specific retention practices and that the relevant set of practices for each
subsidiary then needs to be configured individually.
Ali (2008) debated of employee turnover, its predictors and antecedents and model building and
testing in Western work settings has been very old, however, there have been repeated calls for
its cross cultural implications. Developing countries especially Pakistan with its unique socio-
economic and religious culture faced dearth of research studies on the subject. Present study
aimed to extend the understanding of specific role of organizational cultural values and the
attitudes of supervisor/immediate boss on employee turnover and retention. Further, the
proposed study assessed the moderating role of individual differences, specifically, personality
dimensions on employees intentions to stay or quit. This study used descriptive quantitative
12


approach to answer the research questions. Study proposed that positive and implemented HR
practices, conducive organizational culture and friendly attitudes of supervisor separately and
collectively left strong impact on personality dimensions of individual at workplace. Such
positive and integrated organizational climate directly generated overall satisfaction,
organizational commitment and OCB which virtually forced employees stay in the organization
and vice versa.
Kerner (2008) conducted a study on retention in small hospitals. He argues that organizations
that fail to maintain aggressive and effective employee retention program will allow their talent
to walk out of their doors taking with them training and job experience that will benefit the
gaining organization. Literature has showed that there are identifiable factors that cause
employees to leave their employers and seek opportunity elsewhere. Once managers are aware of
these factors, a set of initiatives can be implemented to avoid this loss of human capital. The
purpose of this his study was to explore what a small business entity experienced regarding
employee retention issues and identifying those intrinsic factors that affected employee turnover,
especially in small firms.
Mitchell et al (2001) wrote on the competition to retain key employees is intense by arguing that
top-level executives and human resource departments spend large amounts of time, effort, and
money trying to figure out how to keep their people from leaving. Their study describes some
new research and its implications for managing turnover and retention. These ideas challenge the
conventional wisdom that dissatisfied people leave and money makes them stay. People often
leave for reasons unrelated to their jobs. In many cases, unexpected events or shocks are the
cause. Employees also often stay because of attachments and their sense of fit, both on the job
13


and in their community. We discuss these ideas and make recommendations for integrating them
into a comprehensive retention plan.
Pritchard (2009) carried out study on competition among employers is increasing for productive
Information Technology (IT) employees. By understanding organizational culture, managers can
identify why employees leave an organization and ways to retain employees. Money and
financial incentives should not be the primary source for motivating employees. Use of intrinsic
motivators will have a greater effect on employee satisfaction and retention. Technical
employees want a balanced mix of salary and an organizational culture that promotes
challenging and meaningful work.
Hassan et al (2010) conducted a study on employee retention as the vital challenge in all
organizations. Their study focused on one industry that was the leather industry of Pakistan
which was facing the same problem of retention of employees due to many reasons. As leather
industry were the third largest exports earning sector in Pakistan, the turnover rate in Leather
Industry of Pakistan is around 25 30% annually. It was observed that mostly second line
managers changed their jobs for high salaries offer, recognition, authority and also to seek for
more knowledge and to get more competitive edge in terms of processing; In tanneries it was
critical and alarming because of the process and article secrecy. In order to achieve competitive
advantage, maximum utilization of resources and to get organizational efficiency employees
were required to be retained in a true spirit in order to cope with all these conditions.
Vanderberg and Nelson (1999) suggested that most turnovers in organizations emanated from a
lack of satisfaction. Dissatisfaction could be due to a lack of psychological fulfillment in the job,
perceptions and realities of non-commensurate remuneration, and an unwelcoming climate
14


within the organization. Dissatisfaction, and the resulting decision to leave, could come at a
significant cost to the organization, which included the loss of skilled individuals and their
expertise, disruption in the operations of the organization until appropriate replacements can be
found, and difficulty in attracting new employees if the reasons for the departure of former
employees were such as make others unwilling to work for the organization. Retention issues
were also influenced by pull-factors which derived from the larger environment within which the
current organization operates. These factors could take a variety of forms, including offers of
better remuneration and working conditions from similar organizations or others which needed
the skills of the individuals concerned.
Bitsch and Hogberg (2004) conducted research on the employee retention: Components of job
satisfaction of green industry employees. Fourteen businesses participated in case studies of
labor management practices. Fifteen non-supervisory employee interviews were analyzed
regarding components of job satisfaction. Components were family values, achievement, and
recognition, work itself, involvement, personal life, interpersonal relationships, job security,
supervision, working conditions, organization, safety, compensation and information.
Khatri et al (2001) indicated that there were dearth of research studies examining employee
turnover in Asian and developing countries contexts. This problem has given sleepless nights to
HR managers and they put emphasis on the need to carry out research in Asian countries
contexts. They further reported that there were very few research studies examining the issue of
turnover in Asian context and such investigations had used a limited number of variables with
small samples, thus this raised concerns of model specification and generalization.

15


Carney (1998) believed that the key to employee retention was quite simple: communicate,
communicate, and communicate. Communication with the employees must begin early on in the
relationship. He believed that the imprinting period of a new employee was probably less than
two weeks. He argued that employers must engage the employee early on by sharing how
important the job they do is. Lynn (1997) followed this up by stating that early on an atmosphere
of fairness and openness must be created by clearly laying out company policies.
Munga and Mbilinyi (2008) examined a range of non-financial incentives, including training;
leave; promotion; housing; and a safe and supportive working environment. They also examined
the systems for managing personnel and the implementation of incentives as a factor in retention,
including the participatory personnel appraisal system; worker participation in discussing their
job requirements and welfare; supervision; recognition and respect. Examining health worker
retention and migration issues called for a broader and a more comprehensive perspective, not
only considering push and pull factors, but also macro factors, such as the growing global
economy and labour market. During this study, three approaches were used, including literature
review, and the collection of primary qualitative data and quantitative data in a field study.
2.4 Empirical Literature Review
Glen (2006) examined effective, practical and holistic people strategies that addressed key skills
retention, employee engagement, and employee motivation and attendance gaps, with a view to
positively impacting on organization costs, productivity and business performance. He also
thought to examine the value of assessment and feedback in talent engagement and retention, and
look at developing employees via experience-based development initiatives. The study assessed
the matrix of the hot buttons or predictors, which needed to be consciously managed with
16


significant potential returns, where managed well. It examined a holistic matrix of nine employee
engagement predictors: process; role challenge; values; work-life balance; information;
stake/leverage/ reward/recognition; management; work environment; and product. Reference
was made to a case study in which this matrix formed the basis of the organizations people
management strategy. The study revealed that, a holistic view of the key elements of the business
most were likely to impact team engagement, motivation, attendance and retention, linking
individual assessment directly to the key drivers of the business, and recognized that key talent
was likely to thrive on experience-based career leverage opportunities.
Memon et al (2009) conducted research by investigating the mediating role of human resources
policies in employee retention. The research strategy for this study was based on case study
method supported with self-administered questionnaire based survey. Habib Bank Limited
(HBL) was taken as a case to identify various push factors and role of HR policies in employee
retention. In an environment of economic growth, globalization and increasingly competitive
markets most fundamental challenge is the attraction and retention of an ample supply of labor
and appropriate skill in order to sustain growth. HR policies play its crucial role in responding
employee complex and erratic workplace issue and to minimize employee high turnover rates.
Since, Pakistan banking sector is frequently in front of high turnover rate and skill drainage
therefore, compelling urge of research was felt to investigate the role of HR policies to mitigate
the effect of Push factors in employee retention. Survey findings revealed that, performance
appraisal was the leading factor containing highest mean value whereas; employee recognition
perceived to be a resulting factor showing lowest mean value. The result entails that employees
at HBL trust the appraisal process and it is based on goals set in advance whereas, employees
17


thought that they do not receive appropriate recognition for their contributions and they believe
that they do not have enough freedom to take independent action when needed.
Riley (2005) studied on the employee retention as one of the most pressing issues in direct care
service nonprofit agencies. Turnover among direct care service workers affects every aspect of
nonprofit agencies including employee morale, client care and service provision. The research
conducted in this study examined a variety of dimensions of employee satisfaction for
ACHIEVE (formerly known as Broome Tioga ARC). The data used in this study came from an
employee satisfaction survey conducted in January of 2009. The survey responses were
evaluated using a variety of statistical tools including: simple ANOVA, correlation and multiple
regressions. The findings of the survey coupled with existing literature allowed the researcher to
make recommendations to increase employee morale and ultimately increase employee retention.
The recommendations are increasing team building trainings, conducting an organizational
culture inventory, increase recognition, and implementation of 360 degree evaluations of all
employees.
Govaerts and Kyndt (2010) wrote on the influence of learning and working climate on the
retention of talented employees. The aim of this study was to investigate some factors that had an
influence on employee retention. Based on the literature and previous research, both employee
and organizational factors are taken into account. They used methods of collecting data by means
of a questionnaire that was distributed on a voluntary basis in professional organizations and
among employees, both electronically and in hard-copy, during 2008-2009. The study sample
consisted of 972 employees, mainly clerks, from diverse profit and social-profit organizations.
The study findings showed that when organizations wanted to retain their employees as it was
important to pay attention to the learning of employees. It was revealed that letting people do
18


more and learn more of what they were good at would encourage them to stay with the
organization. Results concerning the selected employee variables showed that only age had a
significant relationship with retention. Regarding the intention to stay, there existed a positive
relationship between age and retention.
Shoaib et al (2009) investigated the determinants of employee retention in telecom sector of
Pakistan. The research were conducted to study the impact of career development opportunities,
supervisor support, working environment, rewards and work-life policies on employee retention
in Telecom sector of Pakistan. The data were collected through questionnaire from 130
respondents and were used to test the proposed hypothesis. The result revealed the positive
relationship of career development opportunities, supervisor support, working environment,
rewards and work-life policies with employee retention. Strategies and implications that could
help Telecom sector of Pakistan in retaining their employees were also discussed.
Alkandari and Hammad (2009) conducted a study employees retention in private sector: An
exploratory study in the State of Kuwait. The retention of human resources has been shown to be
momentous to the development and the accomplishment of the organizations goals and
objectives. The primary aim of this study was to explore the main factors that affected private
sector workforce retention in the state of Kuwait. 125 surveys distributed to private sector
workforce. The survey questions designed to determine three elements of retention; Benefits
factors, strategies factors and organizational culture factors. The result of the study shows that
benefits factors such as salary and compensation were rated as most important to the private
sector workforce in the state of Kuwait followed by leave benefits and differed compensation.

19


The three strategies rated most important to private sector workforce are rewards and
recognition, annual performance appraisal and training opportunities. While work at home,
voluntary reduction in Work schedule and alternative work schedule were rated as least
important. The culture of private sector organizations in state of Kuwait were based on openness
and trusts, effectively communication and good deal of time spent from supervisor listening to
employees ideas and suggestions. Finally the result employees career plan showed that high
percentage of private sector workforce had no plans to leave or retire from state employment
within the foreseeable future. Samuel and Chipunza (2009) studied employee retention and
turnover using motivational variables as a panacea. This research looked at the extent to which
identified intrinsic and extrinsic motivational variables influenced the retention and reduction of
employee turnover in both public and private sector organizations. The research was aimed at
achieving the following objectives: identify and establish the key intrinsic and extrinsic
motivational variables being used by selected public and private sector organizations in retaining
their employees; determine the extent to which the identified intrinsic and extrinsic motivational
variables are influencing employees retention and turnover in the selected organizations; and
make recommendations to management of the selected organizations on how to effectively retain
employees and reduce turnover. The study adopted the cross-sectional survey research design,
investigating the extent to which selected motivational variables influence employees decision
to either remain or quit an organization.
Quantitative research design was used and this design was chosen because its findings are
generalizable and the data objective. The study examined two public and two private sector
organizations in South Africa. The total population of the research comprised 1800 employees of
the surveyed organizations with a sample size of 145 respondents. A self-developed
20


questionnaire, measured on a Likert Scale was used to collect data from respondents. The
questionnaire had a Cronbach alpha coefficient of = 0.85 suggesting that the instrument was
reliable. The Chi-square test of association was used in testing the hypothesis of the study. The
result showed that employees in both public and private sector organizations were, to a very
large extent, influenced to stay in their respective organizations by a combination of intrinsic and
extrinsic motivational factors. The following motivational variables were found to have
significantly influenced employee retention in both the public and private sector organizations:
training and development, challenging/interesting work, freedom for innovative thinking, and job
security.
Hong and Kaur (2008) researched on a relationship between organizational climate, employee
personality and intention to leave. Their study aimed to examine the relationship between
organizational climate, employee personality and their intention to leave an organization in the
Malaysian context. Four organizational climate dimensions were chosen for this study that is
structure, responsibility, rewards and support. Dominance and sociability were the personality
dimensions chosen and its moderating effects were on the relationship between organizational
climate and intention to leave. Study results revealed that organizational climate had a significant
association with employees intention to leave. The entire four organizational climate dimensions
had significant negative correlations with employees intention to leave. Meanwhile, both the
dominance and sociability personalities were found significantly moderating the relationship
between organizational climate and employees intention to leave. This study was therefore able
to prove the hypotheses proposed and provide support to the existing theories.

21


Ngozwana and Rugimbana (2010) assessed the talent retention strategies by using a case of a
large South African company (CSA). The primary purpose of their study was to investigate the
extent to which key elements of talent management (TM) and employee engagement (EO) were
being utilized to retain employees at a large South African Company. They noted that skills
shortages had become a feature of the South African business environment. As such competition
to attract human capital in the form of talented individuals and the ability to retain them had
become a major competitive consideration even when compared to other competitive dimensions
such as capital, strategy and even research and development. Although the South African
Company (CSA), was committed on paper to appointing, developing and retaining talented
employees it was unclear as to how successful this strategy was, given the high turnover rates.
The study therefore sought to assess the extent to which talent management as a competitive
device was being implemented successfully. Much of the available literature has concentrated on
the key strategies that lead to talent management and employees retention in countries and
settings that are outside Africa. The lack of scholarly investigation of this phenomenon in Africa
where the reality of brain drain is constantly being published, suggested that there is an important
lacuna with respect to the African setting and in particular post-apartheid South Africa which has
witnessed significant brain drain. There is, therefore an important need for such a study in order
to inform the African context and specifically the South African environment.
The study applied an adapted Gallup Workplace Audit (or GWA) developed by Kahns (1990)
and refined by Bhatnagar (2007). The GWA dimensions consist of 12 areas covering retention of
employees, business unit productivity, profitability and customer loyalty (Buckingham and
Coffman, 1999). It is argued that managers need to attend to these key dimensions in order to
ensure better talent management practices. The study undertakes a de-constructivist approach,
22


which entails the use of quantitative research techniques in the form of structured questionnaires
based on the Gallup Workplace Audit (GWA). The study utilized a descriptive design in order to
ascertain the extent of employee engagement in the case of SA. The study sampled a number of
managers and employees at SA to ascertain the extent to which these samples agree that talent
management was practiced in this organization. The main finding was that despite CSAs
commitment to retaining talent, the study found that these employee engagement strategies in a
few important instances might only be partially realized.
Lumley et al (2010) explored the job satisfaction and organizational commitment of employees
in the information technology environment. The objective of the study was to explore the
relationship between employees job satisfaction (as measured by the job satisfaction survey) and
organizational commitment (as measured on the organizational commitment scale). A cross-
sectional survey was conducted on a convenience sample of 86 employees at four information
technology companies in South Africa. Correlation and stepwise regression analyses revealed a
number of significant relationships between the two variables. The findings add new knowledge
that could be used to improve organizational practices for the retention of valuable staff members
in the information technology environment.
Chiboiwa et al (2009) conducted a research by examining employee retention strategy in a
private organization in Zimbabwe. Worldwide, a number of factors have been attributed to the
increase in the level of employee turnover. The way people are paid, recognized and achieve
salary advancement are critical factors in attracting, retaining, and motivating employees. The
challenge for most organizations today is the formulation of an effective employee retention
strategy that will help in retaining employees that are considered critical in attaining
organizational goals. The prevailing hostile economic environment in Zimbabwe has made the
23


formulation of a realistic retention strategy particularly difficult for managers in the face of an
ever changing economic environment that is characterized by hyperinflation with a depleted
labour market occasioned by skill emigration. This research was a case study of a major private
sector medical laboratory company in Zimbabwe and was aimed at achieving the following
objectives: identify the causes of employee turnover in the organization, examine the current
retention practices in the organization, establish the effectiveness of the practices, and attempt a
workable retention practice that could reduce the high rate of employee turnover in the
organization. Qualitative research design was employed using structured interviews as well as
administering research questionnaire to all category of employees. The total population of the
organization nationwide comprised of 3820 employees with a sample size of 2240 respondents.
The result of the research showed that labour turnover was higher amongst non-managerial
employees. Similarly, majority of the employees would soon quit the organization and lastly, the
high rate of employee turnover in the organization was largely attributed to poor reward system
administration.
Westlund and Hannon (2008) wrote on retaining talent by assessing job satisfaction facets most
significantly related to software developer turnover intentions. They argued that retaining
information technology employees had been a problem in many organizations for decades. When
key software developers quit, they depart with critical knowledge of business processes and
systems that are essential for maintaining a competitive advantage. The primary aim of
theirstudy was to assess facets of job satisfaction that are most significantly correlated with
software developer turnover intentions. They used surveys to collect from a sample of software
developers across the United States. Correlations were assessed through multiple linear
regression and parametric measures of association. The results indicated a significant predicting
24


relationship between the software developers turnover intentions and nine facets of job
satisfaction. Also they found that there was a significant negative relationship between
satisfaction with the nature of work and turnover intentions when controlling for the effects of
the other independent variables.
Taylor et al (2004) investigated the reasons for employees leaving or staying. They said that
Over 12,000 academic and practitioner studies have been performed relating job satisfactionwith
voluntary turnover. However, researchers had been frustrated in explaining more than 20 percent
of the variance in turnover. Their study presented the notion that traditional measures of job
satisfaction might not fully capture the reason for staying or quitting. A new construct was
presented that examined the congruence of fit between the job and the person's quality of life
goals. They used a PLS structural equation model on a sample of 135 information systems
workers. This construct was empirically shown to be a better predictor of various measures of
turnover decision (thatis thoughts of quitting, expectation of quitting, and intention to quit) with
an average explained variance of 0.50.
Pop et al (2010) wrote on the relationship between skills training and retention of graduate
interns in a South Africa Information, Communication and Technology Company. They argued
that substantial costs are associated with attrition of key talent in South African organizations. As
a result, organizations invest in graduate internship programmes to attract and retain high caliber
graduate interns. The main objective of the research was to determine whether soft skills and
technical skills training, as part of a graduate internship programme, contributed to the retention
of graduate interns in a South African Information, Communication and Technology (ICT)
company. An exploratory, ex post facto research design was followed. A soft skills, technical
skills and retention survey were administered among a purposive selected sample of graduate
25


interns (N=79) and mentors (N=39) in a South African ICT company. Both groups of
participants indicated that the soft skills presented in the training were important. Combined, the
respondents identified verbal communication, self-motivation, and teamwork and goal
directedness as the most important soft skills for graduate employability. Results further showed
that the technical skills training contributed to a large extent to the employability of the graduate
intern.
Technical skills training were also significantly related to the graduate interns intention to quit
the internship programme. In conclusion, they said that current graduate internship programme
focuses on the majority of employability soft skills required for the acquisition and retention of a
job. Practical training is therefore important for the application of knowledge and to enhance
graduate employability.
Nelson and McCann (2007) reviewed significant relationships between three major knowledge
management (KM), design dimensions and the perceived ability of 150 organizations to retain
their knowledge workers. Knowledge worker retention is a critical challenge for todays
organizations as they face increasing global competition with its demands for even more such
workers, while dramatically shifting workforce demographics hasten their exit. KM design
initiatives that accelerate knowledge creation, acquisition, and particularly knowledge capture,
sharing and retention, are receiving unprecedented levels of investment as a result. While many
factors impact organization financial performance, their research indicates that successful
knowledge worker retention is significantly related with higher reported financial performance.
Cawe (2006) assessed the factors contributing to employee engagement in South Africa. He
argued that employee engagement was a critical business issue for South Africa if they are to
26


take country to the next competitive landscape. He noticed that South African business has been
mired by negative perception of underperformance and un-competitiveness from the
international community for years in the past, with an over-reliance on the mining sector. From
1994, this perception has progressively improved and going forward more urgency from business
was required in order to progress even further. Whilst employee engagement represented only
one factor amongst a number of macro and micro issues, it was central to this countrys
economy, business productivity and sustainability. In attempting to assist business in this regard,
studies of factors that promote employee engagement were investigated. The research was
qualitative and quantitative in nature. A number of respondents from across the length and
breadth of South Africa participated in the study. Analysis was done on the results and
correlation done to the propositions and the literature. The findings identified employee
engagement strategy, the culture of engagement, leadership and management, talent mindset,
communication and knowledge sharing, and organizations reputation and branding as prominent
factors in business in South Africa. Resulting from the research, an employee engagement model
was proposed which attempts to integrate key lessons for business.
Lyons et al (2009) noted that employee engagement as ones willingness and ability to contribute
to organizational success represented an innovative concept that may support retention objectives
for the Department of Defense (DoD). Participants (N = 163) from a large Air Force organization
participated in a web-based organizational assessment targeting junior government employees.
The assessment contained questions about participants intentions to remain with the Air Force,
items that indicated how much certain retention factors impacted their desire to stay with their
current organization, as well as a few open-ended items for those who indicated intentions to
leave the Air Force. Results indicated that turnover intentions for this military sample
27


approximate those of industry. Several elements of employee engagement were identified by
those who reported intentions to leave as possible ways to improve their work situation and
facilitate their retention within the government. Engagement factors were also highly touted as
factors that influence individuals desire to stay with their current organization. While simply a
descriptive study using qualitative techniques, the implications of this research could have broad
applicability to government organizations. Results of this effort suggested that the younger
generation of government workers sought to be engaged in meaningful work.
2.5 Study Gaps
There are a number of gaps left by different reviewed literature ranging from geographical,
methodologies used to time as well as the nature of organization studied. Hassan et al (2010)
conducted a study on employee retention as the vital challenge in all organizations. Their study
focused on one industry that was the leather industry of Pakistan which was facing the same
problem of retention of employees due to many reasons. Despite their study relevance, the study
were conducted in Pakistan where geographical attributes, political inclination and socio-
cultural values differs from Tanzania. Hong and Kaur (2008) researched on a relationship
between organizational climate, employee personality and intention to leave. Their study aimed
to examine the relationship between organizational climate, employee personality and their
intention to leave an organization in the Malaysian context. These researchers left a gap of
geographical location of study as well as time. Ngozwana and Rugimbana (2010) assessed the
talent retention strategies by using a case of large South African company (CSA) .South African
companies operates in an advanced working environment compared to those found in Tanzania.
Therefore their findings cannot be generalized to the Tanzania environment. Despite the fact
that, many studies were conducted to explore factors for the retention in work organizations,
28


most of them were carried out in other countries particularly those found in Asia. Few studies
were carried out to investigate the factors for retention in African organizations including
Tanzania. This study aims to fill gap left by the previous researches specifically the investigating
the factors influencing employee retention in Tanzania organizations.
2.6 Research Model/Conceptual Framework
The study will be guided by the researchers conceptual model (See figure 2.1) as designed
because it took into account many factors for the employees retention including those related to
organization itself, employees as well as critical psychological states of the employees in work
organizations. Organizational factors/strategies/conditions include among other issues: - The
levels and competitiveness of the remuneration schemes. The assumption is that, the
organizations which have an attractive remuneration package are likely to retain its employees
while organizations with weak remuneration package are likely to lose their employees.
The model will assume that, the organizations which have opportunities for personal
development and advancement have also an advantage in retaining its employees. Likewise,
organizations which provide opportunities for personal development and advancement are likely
to retain their best employees. Similarly, organizations which have supportive working
environment as well as organizational justice and prestige have ability of retaining their best
employees. On other hand, employees retention can be determined by the psychological states
of the employees.
These include: - meaningfulness of the work itself to the employees; experienced responsibility
for outcomes of the work as well as knowledge of the actual results of the work. Also the
employees retention can be determined by the employees themselves. For the employees to be
29


retained they have to show that they perform to the levels of expectation of the employers;
should be obedient and ready to adhere to the rules of the organization as well as labour
standards; employees should be able to work independently as well as a good team player when
the need arises. Therefore, in totality of the above components the exercise of labour retention
can be achieved as planned.

Figure : Error! Picture switch must be first formatting switch. Conceptual Framework for the
study
(Source: Developed by the researcher, 2011)







Organizational
factors/strategies/condit
ions
-Level and
competitiveness of
remuneration
-Opportunities for
personal development
and advancement
- Supportive working
environment
-Organizational justice
and prestige
Critical
Psychological
states of the
employees
-Experienced
meaningfulness
of the work
-Experienced
responsibility for
outcomes of the
work
-Knowledge of
the actual results
of the work
Employee
Constructive
retention
-Job
satisfaction
-Performance
-Internal
motivation
- Adherence to
rules
-Teamwork
- Trust to the
management

Employee
Retention
30



CHAPTER THREE
RESEARCH DESIGN AND METHOLOGY
3.1 Introduction
This chapter discusses the method used in collection of data. It specifically takes a critical look at
the research design, population, sample and sampling procedure, research instrument, and data
collection procedure and data analysis plan.
3.2 Research Design
The researcher will use mixed methodology in the design of the study. Mixed method is a
philosophical assumption that integrates qualitative and quantitative research approaches within
a simple subject. Its central premise is that the use of quantitative and qualitative approaches in
combination provides a better understanding of research problems than either approach alone.
Furthermore, this decision is supported by the rationale of availing the merits and overcoming
the demerits of both approaches as discussed by Creswell (2003), the use of multiple data sets
can inform the research, by yielding insight and methodological changes that improve the study
and strengthen findings as well as collecting diverse data which best provide an understanding of
a research problem.
This study therefore will use exploration and descriptive design. Descriptive research is planned
in this study because of its relevance in the field of education. Ary, Jacobs & Razavieh (1985)
have explained that descriptive research helps in studying the present problems of students,
31


teachers, administration, curriculum, teaching learning process, and the like, and to suggest some
solutions to these problems. The use of this method in this study helped in describing and
exploring as much as possible what occurred in the organization as a whole and also describing
how employees (causal and permanent) cope with the work they do and the nature of
employment contract.
Fraenkel and Wallen (2000) also pronounces that in using descriptive research which is a survey
research, obtaining answers to a set of carefully designed and administered questions to a large
group of people lies at the heart of a survey research. The researcher used a descriptive survey
method for the collection and analysis of the information in order to answer the questions which
were posed. According to Polit and Hungler (1995), descriptive survey aims at describing,
observing and documenting aspects of a situation as it occurs rather than explaining them. This
design has advantage of producing a good amount of responses from a wide range of people.
Descriptive survey involves asking the same set of questions of a large number of individuals
either by telephone, mail or in person. This design provides an accurate picture of events and it
also seeks to explain peoples perceptions and behaviour on the basis of data gathered at a point
in time. It is also important to note that this design is appropriate when a researcher attempts to
describe some aspects of a population by selecting unbiased sample of individuals who are asked
to complete questionnaires, interview or tests.
Fraenkel and Wallen (2000) added that, a significant advantage of a descriptive survey is that it
has the potential to provide a lot of information obtained from quite a large sample of
individuals. In using descriptive survey one must be critical about the questions in that they
should be clear and not misleading. This is because descriptive survey results can vary
significantly depending on the exact wording of questions. The results produced by this design
32


can however be unreliable because the questions which are normally asked seek to delve into
private matters of the respondents and respondents may not be completely truthful about the
response (Fraenkel and Wallen 2000).
Fraenkel and Wallen (2000) further stated that questionnaires require subjects who can articulate
their thought well and sometimes put such thoughts in writing. It is again very difficult to get all
the questionnaires completed for meaningful analysis to be made on them. Though this
difficulties and disadvantages exist, the descriptive survey design will be considered the most
appropriate for analyzing the nature and causes of employee retention in Muhimbili National
Hospital and Selian Lutheran Hospital.
3.3 Population of study
Population means all the individuals or objects that meet certain requirements for membership in
the overall group (Churchill and Brown, 2007). The target population of the study consists of all
junior and senior staff employees (present and past that is, from 2002 - 2012) personnel of
Muhimbili National Hospital and Selian Lutheran hospital. Muhimbili National Hospital and
Selian Lutheran hospital will be chosen for this study because the researcher expecting to have
easy access to data. The accessible population will be all senior staff employee and junior
personnel in Muhimbili National Hospital and Selian Lutheran hospital who will be willing to
participate in the study. Management and senior staff employees will be selected because they
serve as key informants who could be of tremendous help in providing very vital information and
other preference materials necessary for the study.
33


3.4 Sample and Sampling Procedure
The major aim of this step is to determine the specific population that will be surveyed, to decide
on an appropriate sample, and to determine the criteria that will be used to select the sample
(Marczyk, et al, 2005). A sample of 65 employees will be used for the study comprising 30
senior and 35 junior staff respectively from the each hospital. A purposive sampling technique
will be used to include all employees because of the nature of the research problem which called
for the non-rejection of any of the respondents because they are privy to the information that the
researcher is seeking. The 65 respondents will be selected through stratified random sampling.
Two strata of present and past employees will be carved. From each stratum a proportionate
number of employees will be drawn to make the total sample. Stratified random sampling will be
used because each of the present and past group of employees from 2002 to 2012, of which
employees will need to be drawn and studied to help achieve the objectives of the study.
3.5 Research Instruments
Data will be collected from the management and employees. The instruments that will be used
by the researcher are interview and a questionnaire. The researcher therefore will develop and
use a questionnaire to survey the views of the respondents. The use of questionnaire will enable a
large number of respondents to be surveyed within a shorter period of time. Again the
questionnaire is preferred to other instruments because it is judged as the fastest mode of
collecting data from the sample. The questionnaire is also believed to guarantee confidentiality
and anonymity of respondents since it is generally self- reporting. Thereby, it elicited more
honest responses as it is also less expensive compared to the other data collection techniques.
34


The questionnaire, as an instrument, however has some inherent problems. For instance, some of
the items could be misinterpreted due to poor wording or differential meaning of terms, which
might not elicit the responses expected by the researcher. However, the researcher will see to it
that all factors or variables that may influence the validity and reliability of the questionnaire are
taken care off.
In developing the questionnaire for the study, the researcher stacked to the rules that Kumar
(2005) suggested. Kumar (2005) asserts that;
in developing questionnaire there are some specific steps that must be taken into
consideration and these steps are The researcher should clearly define and individually
list all the specific research questions, For each specific research question, the
researcher listed all the associated questions that were addressed through the study, the
researcher should also take each research question identified in step 2 and list all the
information required to answer it and the researcher should formulate questions to
obtain the information
3.6 Data Collection Procedure data types
The researcher will personally administer the questionnaires to the respondents. An introductory
letter will be taken from the University of Dar es Salaam to the management of Muhimbili and
Selian Hospitals to officially seek permission for the employees to participate in the study. After
permission had been granted the researcher will brief the employees as to what the study is about
in order to get the needed attention, support and co-operation of the staff. The questionnaires will
be hand-delivered to all the respondents by the researcher. The researcher then will guide the
respondents to complete the instrument without inferring with the choice of responses. The
35


assistance may involve the explanation of instructions or terminologies (Including some
translation) so as to get the most valid data for inclusion in the analysis. Respondents will be
given three weeks to complete the instrument. To ensure an effective return rate, follow up
telephone calls as well as personal visits will be made to encourage the respondents to complete
the questionnaires. This led to a situation where most of the questionnaires were retrieved giving
a return rate of 100 percent. Primary data will directly be obtained from the surveyed
organizations in these procedures. Secondary data for this study will be collected from books,
journals, reports and newspapers, both published and unpublished, as well as from online
sources. Secondary data will be used to support and complement the primary data in the study
findings.
3.7 Data Analysis
The data collected will be edited and eliminate any incomplete questionnaire. The valid
questionnaires will be coded to reflect their corresponding categories in accordance with the
following scoring key: Strongly agree-1, Agreed-2, Disagree-3; and Strongly agree -4; Afterward
the scored questionnaires will be analyzed using Statistical Product for Service Solutions (SPSS)
into the desired descriptive statistics. Since a descriptive sample survey will be used in gathering
data, it will be prudent for the researcher to use the same descriptive method in analyzing the
data that will be obtained. Descriptive surveys do not typically require complex statistical
analysis. However, descriptive statistics (mean, standard deviations, frequencies and
percentages) will be used in analyzing the data that will be gathered.
36


3.6 Unit of Analysis
The unit of analysis is the major entity that is being analyzed in the study. It is the 'what' or
'whom' that is being studied. In social science research, typical units of analysis include
individuals (most common), groups, social organizations and social artifacts (www.
en.wikipedia.org/.../Unit_of_analysis visited on 20.06.2013). Under this study the unit of
analysis will be individuals who filled questionnaires, formed the Focus Group Discussion
(FGDs) as well as those who will be key informants.
3.7 Reliability and Validity of study
Data qualities will be explored through validity and reliability of the information to be collected
from the field.
3.7.1 Reliability
Golafshani (2003) defined reliability as the extent to which results are consistent overtime.
Kothari (2007) defined reliability as the extent to which data collection process yields consistent
results. In addition, Saunders et al (2007) argued that the term reliability meant to what extent
does the repeated measurement of the same object, using the same instrument, yields the same or
very similar results. This study will adopt the construct validity to validate data and Cronbach
Alpha () scale to measure internal reliability. Miller et al (2002) confirmed that Cronbachs
alpha () should be at least 0.70 or higher to retain variables in adequate scale. The reliability test
will be performed using SPSS and the results will give an alpha () value which will determine
the reliability of the data. (if <0.7, data not reliabli, if =/>0.7, data is reliable)
37


3.7.2 Validity
Validity is the extent to which an empirical measurement adequately reflects the real meaning of
the concept under study (Trochim, 2005). Reliability relates to whether it is measuring what we
intend to measure and represents the overarching quality of the measure. Also, Churchill (2007)
defined validity as the extent to which the instrument accurately measures what was intended and
supposed to measure. The questionnaires for this research will be pilot- tested to 20 employees
including management and non-management cadres of Muhimbili National Hospital through
FGDs and results will be used to modify the questionnaires so as to be able to capture the
required information.










38


TIME SCHEDULE OF THIS PROPOSED STUDY
MONTH March April May June July
WEEK 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Proposal writing
Presentation of the proposal
Submission of the proposal to
the supervisor and necessary
correction

Resources mobilization
Data collection and compilation
Data analysis and interpretation
Report writing and submission
of the first draft

Correction and Hardcover
binding and submission of the
dissertation

PROPOSED BUDGET FOR THIS STUDY
S/No ITEM AMOUNT (Tsh)
1 Proposal preparation
Stationary 50,000
Internet services 50,000
Typing and Printing 50,000
Spiral binding 10,000
2 Field costs
Travel expenses 50,000
Daily allowance 450,000
3 Data analysis, reporting and dissertation production
Stationary 50,000
Internet Services 50,000
Typing and Printing 200,000
Professional services for data analysis 100,000
Hardcover binding 100,000
GRAND TOTAL 1,160,000




39


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44


APPENDICES
Appendix I: Questionnaire
Introduction
Dear Sir/Madam
This survey is part of research project to explore the factors for the employees retention in
public versus private sector work organization in Tanzania. We would like to be informed on
certain issues the factors for the employees retention in public versus private sector work
organization in Tanzania. You have been selected as one of the respondents in this survey. Your
answers will make great contributions in my data collection. All information provided will be
used only for academic purposes and will be treated confidentially.
Personal information
1. Your age (please tick the appropriate answer)
a. 20-30 years ( )
b. 31-40 years ( )
c. 41-50 years ( )
d. 51-60 years ( )
e. 60 + ( )
2. Gender (please circle whichever is relevant)

a. Male ( )
b. Female ( )

3. Marital Status
a. Single b. Married c. Divorced/Divorcee d. Widow/widower

4. Academic qualifications (circle the relevant answer)
a. Certificate ( )
b. Diploma ( )
c. University degree ( )
d. Masters degree ( )
e. Any other (specify)..
5. How long have been working at this organization? (circle the relevant answer)
45


a. Less than 4 years ( )
b. 5-10 years ( )
c. 11- 14 years ( )
d. Above 14 years ( )
6. How many employees left the organization within the past ten years
a. Less than 5 employees ( )
b. Between 5 and 10 employees ( )
c. Between 11 and 15 employees ( )
d. Between 16 and 20 employees ( )
e. Above 20 employees ( )
7. What do you believe to be primary reason for employees leaving employment?

a. Insufficient salary ( )
b. Insufficient retirement ( )
c. Pursue other career goals ( )
d. Physical working conditions ( )
e. High stress working conditions ( )
f. Work hours/shift work ( )
g. Other:
Comments_______________________________________________

Please rate the following issues as they relate to your job satisfaction and performance in the
organization
Issues
Excellent
(1)
Very
Good (2)
Good
(3)
Fair
(4)
Poor
(5)
8 Salary
9 Benefits
10 Retirement plans
11 Physical working conditions
12 Work hours/ shift work
13 Training and support
14 Employee involvement
15 Peer relations
16. Have you ever considered leaving position in the current organization?
a. Yes ( )
b. No ( )
46



If Yes, Why: ________________________________________________
______________________________________________________
17. What one item if improved would have the greatest impact on working conditions?
a. Physical work environment ( )
b. Team management techniques/ employee empowerment ( )
c. Reduction of working hours ( )
d. Other:_____________________________________________________

18. What one item if improved would have the greatest impact on retention in your
organization?
a. Salary ( )
b. Benefits ( )
c. Management ( )
d. Physical work environment ( )
e. Work hours/ shifts ( )
f. Training ( )
g. Pre-employment screening ( )
h. Other:_________________________________________________________

Please rate the following issues as they relate to employees retention in the organization (rank
how they assists in retaining employees)
Issues
Excellent
(1)
Very
Good (2)
Good
(3)
Fair
(4)
Poor
(5)
19 Improved Salary
20 Improved Benefits
21 Good Retirement plans
22 Supportive working environment
23 Organization justice and prestige
24 Opportunities for further
development

25. What do you think are the methods used by the organization in retaining the employees?
i. ------------------------------------------------------------------------------------
ii. ------------------------------------------------------------------------------------
iii. ------------------------------------------------------------------------------------
iv. ------------------------------------------------------------------------------------
v. ------------------------------------------------------------------------------------
26. Do you think the above methods used by your organization are unique in relation to what
other organizations practice?
a. Yes ( )
47


b. No ( )
27. If Yes in the question 13 above, what do you think are its uniqueness?
i. ------------------------------------------------------------------------------------
ii. ------------------------------------------------------------------------------------
iii. ------------------------------------------------------------------------------------
iv. ------------------------------------------------------------------------------------
v. ------------------------------------------------------------------------------------
28. If your organization is a public or private, what do you think are their main differences in
employees retention strategies?
i. ------------------------------------------------------------------------------------
ii. ------------------------------------------------------------------------------------
iii. ------------------------------------------------------------------------------------
iv. ------------------------------------------------------------------------------------
v. ------------------------------------------------------------------------------------
29. What are the serious challenges facing your organization in retaining the best
employees?
i. ------------------------------------------------------------------------------------
ii. ------------------------------------------------------------------------------------
iii. ------------------------------------------------------------------------------------
iv. ------------------------------------------------------------------------------------
30. How does the organization deal with the above challenge in making sure that the best
employees are retained?
i. ------------------------------------------------------------------------------------
ii. ------------------------------------------------------------------------------------
iii. ------------------------------------------------------------------------------------
iv. ---------------------------------------------------------------------------------------------------
---------------------------------------------------------------------
v. ------------------------------------------------------------------------------------
31. Do the organization strategies in retaining the best employees achieve the desired goals?
a. Yes ( )
b. No ( )
32. If No, what should be added to supplement the current strategies in retaining the best
employees in your organization?
i. ------------------------------------------------------------------------------------
ii. ------------------------------------------------------------------------------------
iii. ------------------------------------------------------------------------------------
iv. ------------------------------------------------------------------------------------
48



Appendix II: Interview Guide questions

1. Explain how your organization practice succession planning
2. What do you think are the methods used by the organization in retaining the employees?
3. What are the serious challenges facing your organization in retaining the best employees?
4. Kindly provide other information you think can improve human resources succession
planning.