THE EFFECT OF WORK ENVIRONMENT ON ORGANISATIONAL PERFORMANCE

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THE EFFECT OF WORK ENVIRONMENT ON ORGANISATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

Background of the Study

Working environment plays key role in the performance of employees in an organization.

The strategic intention of organizations today is to achieve innovation and also encourage workers to work better, smarter and faster. Realizing the current challenges of the business environment and to make survival possible, organizations have begun paying emphasis on managing the performance of their employees, fulfilling their comfort needs by providing an effective workplace environment that also helps them to attract and retain talent. The responsibility lies with managers and supervisors at all levels of the organization. Businesses must step outside their time-honoured roles and comfort zones to look at new ways of working. According to Sandstorm, (1994) (as cited in Hameed and Amjed 2009), majority of people spend 50% of their lives within indoor environments, which greatly influence their mental status, actions, abilities and performance. Today’s work environment is different, diverse and constantly changing. The term work environment can be associated with the physical condition of the building. Healthy work environments will be free from problems associated with sick building syndrome, which is often due to poor ventilation. The work environment can also include the social interactions at the workplace, including interaction with peers, subordinates, and managers. Generally, employees are entitled to a work in an environment that is free from harassment. A hostile work environment exists when unwelcome sexual conduct interferes with an employee’s job performance, or creates hostile, intimidating, or offensive work environment. The recognition of the significant role of psycho-social environment led to the emergence of organizational psychology, and furthers the concept of quality of work life. The typical employer/employee relationship of old has been turned upside down. In an effort to motivate workers, firms have put into practice a number of activities such as performance based pay, employee involvement, recruiting agreements, practices to help balance work and family life as well as various forms of information sharing. In addition to motivation, workers need the skills and the ability to do their job effectively. It is the quality of the employee’s work environment that most impacts on the level of employee’s motivation and subsequent performance. How well employees engage with the organization, especially with their immediate environment, influences to a great extent their error rate, level of uniqueness and collaboration with other employees, absenteeism and ultimately how long they stay in the job. Comfortable office design motivates the employees and increases their performance to a large extent.

1.2 Statement of the Problem

The current challenge of management today is to establish an environment that effect, affect, retain and motivate its employees for maximization of productivity. As it was done few years ago to keep employees satisfied, it takes an entirely different approach than it did. The present working environment is different, unique and constantly changing from time to time and context. In growing economy, workers have ample opportunities and unlimited job privileges. This condition created an environment where employers need its employees rather than the employees need it employer. Less attention has been paid to workplace environment and moreover, employers and employees are not aware of the influence and hidden dynamics of the workplace environment. According to Hammed and Amjed (2009), the workplace environment, its significant and its related issues are mostly ignored. Many workplace factors influence employee’s productivity. It is not just a twist of that new programs addressing lifestyle changes, work life balance, health and fitness previously that were not considered key benefits are now primary considerations of potential employees, and common practices among the most admired organisations. Research has shown that workplace environment is having a greater impact on the performance and attitude of employees. It therefore important for employers to know how its workplace environment impacts greatly on the performance level, motivation level and engagement of the employees both positively and negative and it may affect largely on both the physical and psychological well-being. Therefore, specifically, this study investigates the effect of working environment and performance level of employees in the organisation. This study examines how working environment affect worker’s performance and evaluate the extent to which workplace environment will contribute to encouraging or discouraging employees to perform well.

1.3 Research Objectives

The objectivities the study seek to research into is grouped into two that is, the general objective of the research and the specific objectives.

1.3.1 General Objective

The main objective of the research study is to ascertain how the working environment of the organisation affect performance of employees.

1.3.2 Specific Objectives

Specifically, the research sought to achieve the following objectives:

To ascertain the relationship between the components of workplace environment and employee’s performance.
To determine the components of workplace environment that affect the performance of employees.

1.4 Research Question

What is the effect of working environment on employee’s performance level in an organisation?

Specifically, the research aims to answer the following research questions.

How does the working environment affect the employee’s productivity in the organisation?
What is the relationship between the components of workplace environment and employee’s productivity?

1.5 Significance of the Study

The study at its completion will benefit the manager, employees and the organisation as a whole. The primary concern of the study is to understand that work environment which is thought to be very important influence on employees’ performance in the organisation. It is also anticipated that the findings of the study will pave way for the authorities of the organisation to accept the variables that affect the employee’s work environment and their performance in the organisation. The relevance of the study on the part of managers of the organisation is hoped to help them to work on their relationship with subordinates and also address issues affecting the employee’s and their immediate environment. Likewise, the research at the end will also help employee’s air out their grievances to the organisation and managers. The study will serve as a background information for promoting and advocating good environment for improved performance of the employees of the organisation. It will also serve as a background information for future research of the same topic and as a blueprint for determining the actual work environment on employee’s performance in an organisation.

1.6 Scope and Limitation of the Study

1.6.1 Scope of the study

The study will be focused on managers and employees in the organization. It will examine how the working environment affect their productivity, either positively or negatively. The organization selected employs more 50 employees both at the office and on the field. The methodology adopted will rely on the information gathered from the employees and their employers in the organisation.

1.6.2 Limitation of the Study

One of the limitation of the study will be the unwillingness of the employees to disclose the main reason why they fail to carry out their proactive and reactive maintenance policies. Also time constraint will be another problem. Moreover, the fear of victimization will be another problem and cause the respondents to be reluctant in delving into vital issues concerning their work environment. Furthermore, some of the respondents may be busy to answer the questionnaires since it will be administered during their working hours.

1.7 Operational Definitions

For the purpose of this study:

1. Performance is considered as the Composite of the four elements namely availability, productivity, competences and responsiveness of employees. Improvement of these four elements indicate improved performance.

2. Availability refers to as presence of workers measured by presence of their provider in his place of work as well as availability of working tools.

3. Productivity is defined as the relationship between outcomes and human resource input measured by the employees work load.

4. Competence is defined as ability, knowledge and traits of employees to perform given work measured by adherence to standard operating procedures and communication with clients.

5. Responsiveness is considered as how well the system meets the legitimate expectation of both clients, measured by health workers‟ satisfaction and clients‟ satisfaction.

6. Working environment is considered as the composite of the two components; physical and behavioural. The physical environment consists of elements that relate to the office occupiers‟ ability to physically connect with their office environment. The behavioural environment consists of components that relate to how well the office occupiers connect with each other.

7. Comfort level is defined as the degree to which employees are comfortable in his work measured by availability of Office building space, Infrastructure (water and electricity), availability of working tools and medical supplies.

8. Office layout is considered as the way office is arranged measured by presence of privacy.

9. Level of interaction is considered as the way worker interacts with fellow worker and his/her employer.

1.8 Organisation of the Study

The study is organised into five chapters.

Chapter one will deal with the introduction, background of the study, statement of the problem, objectives of the study, significance of the study, scope and limitation of the study, and the organization of the study.

Chapter two will mainly consist of the literature review of the study.

Chapter three will contain the research methodology which will consist of the research design, population of the study, sample size, sampling technique, source of data, data collection, analysis and presentation.

Chapter four will handle the time frame of the study

Chapter five presents the summary of the study and conclusions.

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