Contribution of Training and Compensation in Financial Institutions in Tanzania: A Case of NMB PLC

This study assessed the contribution of training and compensation in financial institutions in Tanzania. The general purpose of the study was to assess the contribution of training and compensation management in improving employee performance in financial institutions like NMB PLC. Specifically the study aimed to analyze the contribution of training and compensation to employee performance particularly in NMB PLC, to find out the effect of which training and compensation management can be used as a tool for improving organizational performance to both employees’ and employers’ and to determine the relationships between training and organization performance in financial institutions like NMB in Tanzania as a case study The pursuance of the objective of the study, descriptive survey design was adopted. Pearson’s Product Moment Correlation was used to test the significance of the coefficient of correlation at 5% level of significant. It was found that training and compensation for employees in financial institutions has a significant effect on their performance and that financial compensation received are commensurate with employees’ efforts. The study more found that training and compensation have significant effect in organization performance to both employee and employers. However it found that there is significant relationship between on job-training and organization performance. Based on these findings, it is recommended that for any financial institution such as NMB PLC to improve the performance of employees’, they should offer training and other forms of compensation that will specifically designed to link it with performance