The Influence of Electronic Payroll Management Information System on the Performance of Local Government Authorities (LGAs) in Tanzania

Abstract

ABSTRACT

This study examined the influence of Electronic Payroll anagement Information System (e-PMIS) components, specifically salary reports, electronic payslips, and employee attendance records, on the performance of Local Government Authorities (LGAs) in Tanzania. A quantitative research approach was adopted, and data were gathered from 200 human resource and administrative officers across 43 LGAs using structured questionnaires. Multiple linear regression analysis was utilised to assess the effect of each e-PMIS component on organisational performance. The results revealed that electronic pay slips, employee attendance records, and salary reports each had a positive, statistically significant impact on LGA performance, with electronic pay slips exerting the most substantial effect. These findings suggest that reliable, timely, and automated payroll systems enhance operational efficiency, accuracy, accountability, and employee trust. Grounded in the Resource-Based View (RBV), the study conceptualises the e-PMIS as a strategic organisational resource. Its value is demonstrated through enhanced HR efficiency and improved payroll accuracy. Rarity is reflected in the limited adoption of integrated digital payroll systems across LGAs. Inimitability arises from its close alignment with local HR policies and regulatory frameworks, making it difficult for other organisations to replicate effectively. Organisation is evidenced by the presence of structured workflows and trained personnel that support its efficient utilisation. Future studies are proposed to examine additional e-PMIS components and contextual factors that influence system effectiveness to optimise payroll processes and sustain performance improvements across public organisations.