Role of Organisation Culture and Management Commitment on Implementation of Performance contract in Tanzania’s Local Authorities: A Case of Morogoro Municipal Council

The study aimed to examine the role of organization culture and management commitment on implementation of performance contract in Tanzania‟s Local authorities usingMorogoro Municipal Council as a case study. Public sector has recognized the importance of performance management in improving performance of public sector in delivering quality services to the citizens. One of the key priorities of the Tanzanian government in public sector reforms was to execute programmes that will enhance an efficient, effective and quality delivery of services to the people by using different performance tools, one of them being performance contract. The study found that organisation culture and Management Commitment are very important for successful implementation of performance contracts in Morogoro Municipal Council. The study further recommended that, Head of departments should lead by examples. Also,there is a positive relationship between how Head of departments commit themselves to the process of Performance contract implementation and how they motivate their staff. Finally,employees should not be transferred from one station to another, unless there is a good reason for the same,as frequent employees‟ transfer affects the process of performance contract executionand therefore should be avoided at all cost.